The big resistance zone at $440 – which I outlined in my last Bitcoin technical analysis article – has now become even more important. This level has acted as resistance about five times since the 21st of February.
The 1-hour chart also shows that the bullish sentiment is starting to fade. The RSI indicator has been steady drifting lower, while price was still making new highs. This phenomenon is known as divergence and this divergence has been building since yesterday. Divergence very frequently precedes market reversals and is a leading indicator, not a lagging one!
I would also like to point out the significance of the $432.50 price level. This area acted as resistance about three times between the 26th and 27th. When price finally broken above this level on the 28th, $432.50 turned into support and sent the market higher. Since price is currently hovering around $435, this pivot will likely act as support to any potential sell-offs over the next few days. If price plunges underneath $432.50, I would not be surprised to see the market drop all the way down to $420.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
The U.S. Securities and Exchange Commission has approved Bitwise’s spot Chainlink ETF, marking the first…
Rumble and Tether have officially launched the Rumble Wallet, a self-custodial crypto wallet integrated directly…
BNB Chain is preparing to activate its Fermi hard fork on January 14 at 2:30…
Ethereum closes 2025 having firmly established itself as the secure foundation for an expanding digital…
Solana ends 2025 as one of the few blockchain ecosystems where revenue, assets, and trading…
Morgan Stanley has taken a decisive step into the regulated crypto investment market, filing its…