Crypto Analysis - BTC Shows Strong Resistance, Experiencing a Huge Spike by 8.5%
(Photo : Getty Images)

Bitcoin price got up a strong 8.5% from its July low worth $32,700. It was recorded on Thursday, July 1, and Friday, July 2. The crypto surged over $3,000 in two days, breaking its 20-day moving average price at $34,900. 

As of June 4, Bitcoin faces a mixture of significant resistance as seen on its daily timeframe.

Bitcoin Comes Through With Major Resistance

In a report, Crypto Potato said that Bitcoin's significant resistance stems from a falling trend-line dating back to the middle of May when Bitcoin reached a trade of over $50,000.

The trend-line forms the upper aspect of a possible descending triangle pattern, wherein the apex is expected to push forward within ten days. The triangle floor will be at $31,000 -- the level that BTC found support for a total of five times ever since retesting it on May 19.

With a shorter time frame, Bitcoin's price traded inside a decreasing price channel ever since reaching its weekly high totaling $36,620 on Tuesday, June 29. As mentioned, Bitcoin found a double-bottom wave at $32,700 on both days -- June 1 and June 2.

It then managed to break away from its low point and break above its descending price channel, forming a short-term ascending channel over the weekend.

Read Also: Top Cryptocurrencies Continue to Fall While Others Thrive, Gaining Double-Digit Assets

Earlier on July 4, Bitcoin surged around $34,760 together with the MA-20. It reached a total price of $35,700, increasing its resistance at the upper angle of the triangle.

As a result, the formation is now looking slightly in favor of Bitcoin. But still, the cryptocurrency has to surpass its central resistance area, which is at $35,000 to $36,000, including the MA-20 at $34,900, mid-term descending line, and the MA-50 at $36,600.

On top of that, the daily RSI also finds itself at a critical level. It is retesting a descending line filled with lower highs, which formed in February. But as always, Bitcoin continues to trade within a range of $30,000 to $42,000 and will have to break over $42,000 to come back into the bullish track.

Bitcoin Price - Support and Resistance Levels

Based on Crypto Potato's report, Bitcoin's key support levels are as follows:

$34,900 to 35,000, $33,900, $33,500, $32,700, $31,675

Following this is Bitcoin's key resistance levels:

$36,620, $38,000, $38,570, $39,490, $40,500

Crypto Analysis: How Bitcoin's Resistance Works

Crypto Potato believes that if Bitcoin buyers break the combined $35,700 and head above $36,000, the resistance will become:

  • 36,620 - late June Highs and 50-day MA
  • $38,000
  • $38,570 - equals to 1.272 Fib Extension
  • $39,490 - early June Highs
  • $40,500 - bearish .382 Fib

As a result, Bitcoin's strong resistance will be $42,000 for its January 2022 highs.

Despite Crypto Potato's prediction, there is still a lot that could happen that might afftect Bitcoin's resistance, either for the better or worse. The only thing we could all do is to wait until the crypto market decides, which cryptocurrency will yield the highest resistance.

Related Article: Tesla CEO Elon Musk Tweets 'Baby Doge,' Sending The Cryptocurrency Up by 98%

This article is owned by Tech Times

Written by Fran Sanders

ⓒ 2021 All rights reserved. Do not reproduce without permission.