29 Mar 2022

Bitcoin trading at a potent resistance level

Bitcoin has broken out of the consolidation range after 2.5 months and is currently trading at a strong resistance level.
Bitcoin trading at a potent resistance level.png
Source: Tradingview, Coinbase
Bitcoin is currently trading around the $47,500 resistance level, which has been an important technical area since early 2021. After breaking out of consolidation towards the upside, $45,000 is most likely flipped to a support level. If bitcoin fails to maintain prices above $45,000, the support levels around the $40-42,000 from the last two and a half months of consolidation are the next important support levels. Towards the upside, if the strong $47-48k resistance level is broken, $50,000 is the first key resistance level. Further towards the upside, $53,000 has previously proven to be an important technical level. Previous visits to this area have historically been followed by high volatility.
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