Crypto Daily: Bitcoin Cannot Break Out Key Resistance Level

Aug 17, 2021
11:08
2 min de lectura

Equipo de Choise.com

Let’s take a look at the Bitcoin chart and try to figure out which way the price of the first cryptocurrency will go in the near future:

Yesterday the chart once again tried to overcome the resistance at $48,000, but it did not work out again. Sellers activated at these levels and pushed the price back down to $46,500. Within 7 days, buyers cannot overcome this important level in any way, which is a dangerous signal for the Bitcoin price.

Significant bearish divergences have formed on the MACD, RSI, and Stochastic indicators on the 4-hour timeframe. This may indicate an impending decline in the market as market volatility begins to decline. This can be judged by the MACD oscillator. Judging by it, this means that market participants have taken a wait-and-see attitude and are waiting for a new important signal before a new movement. This usually indicates some weakness in the current market.

If you take a closer look at the chart, you will notice that a rising wedge has formed on it since the beginning of August. This figure also confirms our conclusions. At the same time, the chart has already broken through the lower border of the pattern and has a high probability of further decline.

Trading volumes are also declining. The entire rise from $29,000 to $48,000 took place at low volumes. This suggests that market participants are in no hurry to enter the market, and the current growth is unstable in this phase.

These formations on the chart indicate a possible decline towards the $42,500 level. It is here that the nearest strong resistance level is located, near which the fight between bulls and bears recently unfolded. There are now more downward signals than upward signals. That is why the best option now is to exit the market and wait and see tactics.