Bitcoin News and Analysis
- Bitcoin prices remain above the key psychological level of $40,000 but bulls struggle to break through resistance
- USD provides an additional catalyst for price action
- Singapore issues new monetary policy guidelines to restrict the promotion of crypto trading
Can Bitcoin Bulls Break Above Trendline Resistance?
Despite the sell-off that has persisted since its peak in November last year (just short of the $70,000 handle), fundamental factors have provided an additional catalyst for price action and will likely do so for the remainder of Q1.
With investors now pricing in higher interest rates, a stronger US Dollar and higher treasuries have hindered the digital assets ability to climb higher. However, as risk appetite remains elevated, bears have been limited in their attempt to drive prices back towards the lower bound of the descending channel, providing support at $36,426.
Bitcoin (BTC/USD) Price Action
As bulls strive to recover losses from the steep decline in prices, the 38.2% Fibonacci retracement from the 2020-2021 move continues to hold bulls at bay at $44,123 with the next level of resistance holding firm at $46,000.
Although an array of economic data and rising geopolitical tensions may drive price action in either direction, both buyers and sellers will need to break through the zone of confluency mentioned above. If bears are able to break below $36,000, a retest of the $30,000 level may be probable.
On the contrary, bulls will need to drive prices above $46,000 to regain control over the imminent trend.
Bitcoin Daily Chart
Source: TradingView, Chart by Tammy Da Costa
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707