Bitcoin (BTC) Tries to Break Another Resistance; Dip-Buying Time?

The bull cycle from $37,776 trend-line support pushed Bitcoin prices towards the monthly resistance at $45,000. Remember, the bellwether crypto has encountered many rejections in this area for nearly three months, approaching it for the 5th time. Do buyers have the needed strength to reclaim the value area?

Bitcoin price has climbed within an imminent ascending trend-line since sellers set the current lower low near the $33,000 mark. The new higher lows minimize sellers’ attempt to reclaim the market, as bulls struggle for a candlestick close beyond $45,000.

For now, Bitcoin retest the immediate resistance area for the 5th time in about three months. Moreover, the tail rejection from the previous 24hr candlestick with reducing volume activity indicates reversals for the cryptocurrency.

The possible retracement has a high probability of dragging BTC 10% lower to retest the support confluence of ascending trend-line and $40K. Market participants might access a lucrative dip-buying opportunity if BTC indicates reversal signs around this support floor.

IntoTheBlock’s on-chain data shows BTC addressed have exceeded the 40 million mark, levels never explored. Contrarily, sellers breaching the support would trigger downtrends for the leading crypto. That can see Bitcoin price revising the $33,000 January lows.

Technical Indicators

  • Resistance zones – $45K and $52K
  • Support zones – $45K and $36K

The trend-defining 200-day Exponential Moving Average intensifies sellers’ reaction around $45K, supporting bearish reversals for BTC. The resistance confluence shows how vital it is for bulls to regain it.

Meanwhile, the gradual climb in the Relative Strength Index (SRI) shows bulls regaining momentum. Furthermore, the RSI slope distances higher from the 14-Simple Moving Average and midline.

BTC Daily Chart

Bitcoin price contemplates a move to overcome the crucial resistance at $45K. Success will see the bellwether crypto exploring the supply zone at $46K before eyeing a potential $50K retest. That way, Bitcoin’s road towards the $50,000 – $60,000 has two crucial resistance zone.

The first hurdle sits at $46,000, and BTC tries to challenge the area. Another resistance stands at the 200-day MA, currently at $48,000. Remember, Bitcoin breaking above the MA will likely confirm trend reversals, welcoming a new bull rally.

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