Bitcoin is currently facing significant challenges as it attempts to break out of a tight price range. Despite a slight increase, uncertainty remains high among investors.
Bitcoin, the leading cryptocurrency, is currently facing several technical resistances that are preventing any significant price movement. Over the past few weeks, the price has fluctuated within a narrow range between $84,000 and $86,000 without a clear breakout. This sideways movement reflects the uncertainty of investors seeking safe havens amid global economic tensions and trade crises.
A prominent market analyst known as Daan Crypto has conducted a detailed technical analysis of the current Bitcoin situation. He identifies three key resistances that are keeping the price in the current zone: a diagonal downtrend line, the 200-day exponential moving average (EMA), and the 200-day simple moving average (MA). These indicators are crucial for determining medium- and long-term trends and require a significant price breakout to signal a trend reversal.
Since reaching a new all-time high in January, Bitcoin has lost over 22% of its market value. This correction is primarily attributed to international trade conflicts, which prompted investors to shift to less risky assets. However, a temporary halt to new tariffs and the beginning of global negotiations led to a slight recovery in April.
Daan Crypto’s technical analysis highlights that Bitcoin needs to break above the 200-day EMA and MA to break out of the consolidation phase. These indicators provide an average of the last 200 days, with the EMA reacting more quickly to short-term price changes than the MA. A break above these lines could initiate a full price recovery.
Another critical point is the $90,000-$91,000 range, which served as important support during the earlier phase of the bull market. A successful reclaim of this zone could bring Bitcoin back into bullish trading territory and signal a continuation of the broader bull market.
At the time of writing, Bitcoin is trading at $84,868, up slightly by 0.13% on the day. However, daily trading volume has fallen by 42.34% to $12.52 billion, indicating declining market activity.
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