Bitcoin Breaks Two Resistance Levels Last Week, But It May Not Be Enough for a Recovery Rally
Bitcoin has successfully broken two resistance levels that could serve as the starting point for a reversal rally as both levels kept bitcoin under the $21,000 price range, and we can only see a few scenarios in the coming weeks.
edge-to-edge movement
It broke above $21,000 and gained a foothold above the 21-day exponential moving average, which acts as the first resistance for any asset moving into a downtrend or acting as support for the asset. Is.
The only resistance ahead of it is the 50-day moving average, which is acting as a winning move for Bitcoin next level. Generally, when assets enter a range between two moving averages, they move from one level to another if it is not breaking through either.
fall back below the $21,000 threshold
Lack of trading volume and market inflows could drop below $21,000, which could mark the end of the mild recovery rally seen a few days ago. The next support level for bitcoin remains near the $18,800 level.
Digital gold has successfully bounced off the mentioned price level twice since June 18. With another bounce, we will get confirmation of consolidation, which is a typical sign of an upcoming long-term reversal.
recession outlook
Despite a 15% recovery over the past week, bitcoin has remained in a sharp decline over the past 100 days, and if bitcoin fails to sustain above $20,000, we may see a continuation of the trend in the coming weeks.
At press time, bitcoin is trading at $21,310 and has lost 1.3% of its value over the past 24 hours.