Technical Analysis: What Do Bitcoin Traders Need To Know Right Now?
Bitcoin prices have been trading north of $28,000 lately, as the cryptocurrency fluctuates within a reasonably well-defined range.
The digital currency has experienced some minor price gyrations in the last few days, but it has remained stuck below $29,000, according to Coinbase data provided by TradingView.
In light of these recent price movements, several analysts weighed in on where the cryptocurrency might go next, as well as the key levels of support and resistance it could encounter.
Short-term technical analysis
Some of the market experts who offered input for this particular article focused on the relatively near future when trying to get a solid handle on the key variables driving bitcoin’s price movements.
“Based on daily timeframes, the market is bearish overall after liquidity was swept in the 30k-28.5k range because of the FUD on Monday (Cointelegraph’s misreporting of a Blackrock ETF approval),” said Joe Lee, CEO of cryptocurrency venture capital fund, on Meg.
“The next key level to watch out for is at 27.5k for resistance and 26.5k as more liquidity is forming in that zone. A strong support level is needed in order for markets to turn bullish again.”
Tim Enneking, managing director of Digital Capital Management, also offered some helpful input.
“In the short term, support is $28k, very strong resistance is $30k,” he stated.
Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, also weighed in.
“In the short term, I think market participants are watching the $30,000 level that was proved as resistance this week,” he stated.
Armando Aguilar, an independent cryptocurrency analyst, also chimed in, stating that “BTC could see new bullish momentum if it clears the $28.5k resistance zone which was seen as consolidation ground.”
“The next upper key resistance levels would be above the $29.3k – $29.5k range,” he added.
Longer-term technical analysis
Some of the market observers who provided technical analysis for this particular piece also viewed the situation using a broader time frame.
“Longer term, the support at $28k is pretty weak; there is, however, quite strong support at $26k,” said Enneking.
“Resistance remains at the same level ($30k), but is much stronger over the longer term. $30k was broken to the downside in May 2021 and hasn’t been broken meaningfully (by a large margin or for an extended period) since.”
Sifling also offered some perspective.
“If Bitcoin can gain momentum over $30,000 and break this year’s consolidated range of $32,000, it could suggest that longer term bullish momentum is resumingl,” he stated.
Contrary to this, if Bitcoin falls below the $25,000 support level that held in June and September, it could suggest that the bears are in control and $20,000 would be the next line in the sand to watch,” aid Siflin.