Bitcoin (BTCUSD) Prepares for a Renewed Challenge at $28,000

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more

BTCUSD Prepares to Assault the $28,000 Resistance Again

BTCUSD prepares for another attempt to breach the significant $28,000 resistance level. Over the past two months, Bitcoin has made two prior attempts to conquer this level, but both have met with resistance. The current market sentiment suggests that Bitcoin is poised for yet another challenge to retest this critical resistance.

BTCUSD Key Levels
Supply Levels: $30,000, $28,000
Demand Levels: $26,300, $25,800

As Bitcoin price reaches $26,550, an intriguing development emerges in the form of a reversal candlestick pattern, featuring a bullish hammer candlestick. The appearance of this reversal pattern suggests that there might be a shift in market sentiment, which aligns with a bullish bias observed in the new candlestick formation as of the time of writing.

Analyzing the daily chart, it’s evident that the Parabolic SAR (Stop and Reverse) dots have moved above the daily candlesticks, primarily in response to the recent rejection at the $28,000 resistance level. However, the Relative Strength Index (RSI) line has temporarily dipped below the 50 mark but is showing signs of an impending upward movement.

Market Expectations

Shifting the focus to the 4-hour timeframe, the RSI line initially descended into oversold territory following the price rejection at $28,000. However, it is displaying a reversal as it moves back towards the 50 mark. In parallel, the Parabolic SAR dots have switched positions below the 4-hour candlesticks. Bitcoin is poised for a renewed challenge at the $28,000 resistance.

Place winning Quant trades with us. Get QNT here

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.