BTC/USD bows to critical resistance at $44,000
Bitcoin News and Analysis
- Bitcoin prices remain above the key psychological level of $40,000 but bulls are struggling to break through resistance
- USD provides additional catalyst for price action
- Singapore issues new monetary policy guidelines to restrict crypto trading promotion
Can Bitcoin Bulls Break Above Trendline Resistance?
Over the past few weeks, Bitcoin (BTC/USD) prices have continued to trade between key technical levels, finding support above the $40,000 handle.
Despite the persistent sell off from its peak in November last year (just below the $70,000 handle), fundamental factors have provided additional catalyst for price action and will likely do so for the remainder. of the first trimester.
Investors now valuing higher interest rates, a stronger US dollar and higher Treasuries hampered the ability of digital assets to climb higher. However, as risk appetite remains high, the bears have been limited in their attempt to push prices back towards the lower boundary of the descending channel, providing support at $36,426.
Bitcoin price (BTC/USD)
As the bulls strive to recoup losses from the steep price decline, the 38.2% Fibonacci retracement of the 2020-2021 move continues to hold the bulls at bay at $44,123 with the next level of resistance remaining. closes at $46,000.
While an array of economic data and growing geopolitical tensions can drive price action in either direction, buyers and sellers will have to cross the confluence zone mentioned above. If the bears are able to break below $36,000, a retest of the $30,000 level may be likely.
On the contrary, the bulls will need to push prices above $46,000 to regain control of the impending trend.
Bitcoin daily chart
Source: TradingView, chart by Tammy DaCosta
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707