Bitcoin Price Potential Facing Resistance
According to technical analysis, Bitcoin’s price recovery may be hindered by resistance levels around $90,000.
Moving Averages and Resistance Levels
Trader and analyst Michael van de Poppe points to the convergence of Bitcoin’s 50-day and 200-day moving averages near this price point. This confluence creates a significant resistance zone, potentially preventing further upward momentum.
Historical Price Patterns
The analyst highlights a potential bearish double-top pattern forming on the Bitcoin price chart. This pattern, characterized by two successive peaks at roughly the same price level, suggests a potential price reversal. However, it’s crucial to note that confirmation of this pattern requires a definitive break below the neckline.
External Factors Influencing Bitcoin Price
The analyst acknowledges the influence of external factors on Bitcoin’s price, including broader market sentiment and macroeconomic conditions. Volatility in traditional markets, particularly the US treasury bond yields, can impact investor sentiment towards riskier assets like Bitcoin.
Alternative Trading Strategies
Despite potential resistance, Van de Poppe suggests alternative trading strategies. He identifies support levels at $80,000 and $75,000 as potential entry points for long positions. These levels offer opportunities for traders to capitalize on potential rebounds.
