Green Support At $27,000: Bitcoin’s Key Level As Retrace Looms
April 03 2023 - 3:00PM
NEWSBTC
Bitcoin (BTC) remains in consolidation mode, trading within a fully
formed range between $27,500 and $28,000. While the cryptocurrency
has been unable to break through its toughest resistance wall, it
has found solid support at the $27,000 level. While the
support level at $27,000 has given bullish traders hope for another
attempt to reach the $30,000 mark, the potential for a retrace to
find bullish momentum and strength to breach the higher high
resistance still looms. Related Reading: Cardano (ADA) Could Break
Above $0.5 Very Soon, Here’s Why A Matter Of Time Before Bitcoin
Sweeps The Lower Levels? Bitcoin may face a potential pullback and
test support levels at $27,000, the previously gained support of
$25,200, or even lower. However, there is still a bullish scenario
for the cryptocurrency despite these short-term fluctuations. The
$25,000 support region aligns with the 50-day moving average (MA).
This provides a significant threshold to prevent further declines
and could serve as a bounce-back point for Bitcoin to reach new
highs. On the other hand, crypto analyst Justin Bennett believes
that Bitcoin will eventually retest the $20,000 price level,
regardless of whether it makes another push toward $30,000 in the
short term. Bennett suggests that is simply the nature of Bitcoin,
which is known for its high volatility. The chart above shows
that there is currently a significant amount of liquidity available
below the $20,000 mark, specifically within the range of $18,000 to
$19,500. While this liquidity could fuel Bitcoin if it retraces to
those levels, it poses a potential risk for the cryptocurrency. BTC
At A Critical Moment According to crypto analysis firm Material
Indicator, Bitcoin’s current price range is marked by a “ladder” of
ask liquidity, descending from the $29,000 to $30,000 range to the
active trading range. This suggests significant selling pressure at
the higher end of the range, preventing Bitcoin from breaking above
the $30,000 resistance level. On the other hand, Material
Indicators have identified new bids appearing around the $27,600
level, indicating support to maintain the current range and make
another attempt at reaching $30,000. This suggests that there is
still a bullish sentiment in the market, despite the current
range-bound price movements. According to the analyst team at
Material Indicators, Bitcoin has made three failed attempts to
surpass the higher high resistance level. However, despite these
attempts, there has not been a confirmed breakout or breakdown from
the current price range. The price has been rejected at various
points, resulting in choppy price movements within the range.
Overall, the appearance of new bids at this level indicates that
some investors are willing to buy Bitcoin at this price, which can
help provide support and potentially drive the price higher, which
will confirm the new trend of Bitcoin and further confidence in
BTC. Related Reading: Shiba Inu Fundamentals Look Strong, When Will
SHIB Price Follow? Bitcoin is trading at $28,100, almost trading
neutral with a decline of 0.3% in the last 24 hours and 0.2% in the
last 7 days. Featured image from Unsplash, chart from
TradingView.com
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