After bouncing off a two-month low in late January, Bitcoin recovered by almost 30% in three weeks and traded back at the top. It saw rejection and now appears to form a double-top pattern on the daily chart.
Once again, Bitcoin returns to the top after suspending bullish for a month. It bounced off $38500 and saw an impressive recovery in the last three weeks.
It tested $48,826 earlier this morning and paused recovery due to a small rejection. While the bulls are fully back in control, we can expect more upside movement if the price breaks above $48,969 – marked as January’s high.
But looking at the setup, which looks more like a double-top (bearish) pattern on the current daily chart, Bitcoin is likely to initiate a drop if the pattern comes into play. That could later lead to a serious clampdown in the future.
From a technical standpoint, the bulls have an upper hand as the trend is still much in their favour. January high remains a key level to watch for a breakup. The next target for BTC would be the December 2021 high if the breakup succeeds.
A false breakout could trap the buyers and at the same time trigger a trend reversal pattern, capable of plunging the price to the much-anticipated $33,000 level in the future.
Bitcoin Key Levels To Watch
Source: Tradingview
A successful break above January’s high could advance the rally to the $50,000 psychological resistance level in no time. The higher resistance levels to watch for an increase lie at $51,000 and $52,000 – the December 2021 high.
If the price drops to activate the double-top formation, the closest levels for support are $45,600 and $44,000. Below these levels lie $41,884 and $40,254. The $38,500 level is the next major support to watch for a crackdown.
Key Resistance Levels: $48,969, $50,000, $52,000
Key Support Levels: $45,600, $44,000, $41,884
Spot Price: $50,000
Trend: Bullish
Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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