Bitcoin saw its price retracement after initially moving higher and clearing the resistance at $80,000. However, eventually the price hit major resistance at $82,000 before falling back down. Now the Bitcoin price seems to be stuck in a sideways movement that threatens to mean the end of the recovery. However, this may not be the end of the bullish trend highlighted on the chart.
Why Bitcoin Price Could Recover Soon
In a recent post, a pseudonymous crypto analyst who goes by the name HAMED_AZ marked three clear signals that could show that the bitcoin price is on the verge of a bullish reversal. The first of these is that the cryptocurrency has now entered a high demand zone.
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This demand zone is between $70,000 and $73,000, which shows the levels where there has been the most support for the Bitcoin price in recent times. According to the crypto analyst, this demand zone has previously been a strong response zone and could continue to exist in the same way.
Next on the line is the rising trend line that has appeared on the Bitcoin chart. This rising trendline has held and has held lately previously supported the uptrend. If this trend continues, it is likely that the Bitcoin price will continue to rise.
Then, last but not least on the list is the fact that the 50% Fibonacci retracement. Since the 0.5 Fibonacci level is just around $71,302, it means that BTC price has not moved towards the general area of this level, creating alignment.
Where is the price going?
After the analysis, Bitcoin price could soon undergo another upward recovery. However, as before, there is still plenty of resistance lurking at the $82,000 level, meaning this is the level to beat if bulls want to maintain the uptrend.
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In the bearish case, Bitcoin price should break first below the rising trend line. This brings it to current levels below $71,000, and if this happens, the crypto analyst says it would open the door for an even deeper correction for the cryptocurrency.
Featured image of Dall.E, chart from TradingView.com