Bitcoin looks relatively calm over the past few days with no major signal for the next actual direction. However, it recently initiated a drop, but quickly bounced back to its trading range as it decides on the next big move.

Last week saw Bitcoin through another significant milestone after increasing steadily for a month. A rejection near the $53,000 level subjected trading in a quiet mode as it continues to hover sideways.

The landscape has not changed much since then, although it attempted to drop below the $50,000 level but the bulls reacted fast and intercepted the price at around $50,500 – marked as last week’s low. It bounced back and retested the trading level of $52,000.

Unfortunately, the leading cryptocurrency failed to close above this trading level due to a rejection, which now appears like a breakdown and retest pattern on the 4-hour timeframe.

In fact, BTC has initiated selling this morning and is now looking poise for a drop on the hourly timeframe. The price appeared relatively strong on the daily timeframe. A daily close below

However, it is noteworthy to say that the $50,000 and $53,000 range are serving as contraction area for almost two weeks. An expansion from that price range could activate a massive surge in volatility as the next actual direction is yet to be ascertained.

Bitcoin’s Key Levels To Watch

Source: Tradingview

While brewing for an expansion, a push above $52,000 and $53,000 – which is currently held as resistance levels – could allow the asset to test $54,000 before tapping the $55,300 level.

If BTC followed the bearish signal on the lower timeframe, we can expect an easy crack through the $50,625 support level to $49,000. The $47,250 level is the next support to consider for more drawdowns.

Key Resistance Levels: $52,000, $53,000, $55,300

Key Support Levels: $50,625, $49,000, $47,250

Spot Price: $51,300
Trend: Bullish
Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: kebox/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ February 27, 2024 5:12 pm