Bitcoin has been struggling to reach $47k, and the bulls seem to have lost their power in the rally. After the correction from $48.3k and the price of BTC bottoming out at $44.2k, Bitcoin has been stuck mainly between the $45.5k-$47k range. The price has moved past $47k twice but was rejected and fell below $46.5k again. So, is the rally over, or are we just winding up for the next significant move?
Bitcoin’s price action
Bitcoin faces resistance at the $47.5k level, which is critical for the rally. It has faced rejection near that price twice, and now we are trading at $46k. On the 15 minute chart, the price is stuck at 0.236 fib level on the downside move from $47.5k. However, all this won’t be a big deal if the price manages to stay above $45k during this sideways movement.
On the 1-hour chart of Bitcoin, a trendline is forming, which has been pushing the price of Bitcoin for a long time. Yesterday, the trendline broke for a while, but the volume wasn’t high enough to sustain above that level, and we fell back again. In this chart, we also have the 200-day EMA, which has supported the price when falling back from the $47k region. So, it is essential that the level holds, or we might retest below $45k.
If Bitcoin moves up, it will have to clear the $47.5k level with quite a good volume and stay above it. Only, if that happens, we can expect the bulls to push BTC to $48.3k and retest the 200-day Moving average, and hopefully clear it this time.
So, is the rally over?
Unless we move above the MA 200 chart or below the $45k, the rally is neither over nor on. I am saying this because, in 2017, the price of Bitcoin was unable to clear the MA 200 level and fell back. We saw a major bear market after that. I don’t believe that the same thing could happen again but you never know. So, stay patient before the price shows any significant movement.
Why do you think Bitcoin is struggling to reach $47k? And do you think a similar pattern like 2017 could play out this time? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Judge dismisses lawsuit against Binance for violating US securities law
