Bitcoin is trading above the 21 Week EMA which is a very important indicator that has kept the Bitcoin afloat against bearish forces.
The cryptocurrency is testing both the 21-week EMA and a recently broken downtrend line, which are key levels for its short-term price trajectory.
Bitcoin's market cap is falling, but trading volume remains high at $45 billion, with the price hovering around $61,086.04, down 1.5%.
Bitcoin is still floating above the 21-Weekly Exponential Moving Average, a key support that dares to blink for the cryptocurrency. In the past few weeks, this technical indicator has been pivotal in supporting the BTC wave forward and counteracting bearish force. This level is crucial to watch as Bitcoin has briefly tested and wicked towards the recently violated bearish trend line established two weeks ago. These levels are vital to the short term cryptocurrency prices as market analysts believe.
Bitcoin Testing Key Support Levels
Bitcoin's recent behavior suggests a degree of resilience, as it bounced off the 21-week EMA during a brief downside wick. This EMA has historically been a significant point for Bitcoin’s price trends, often serving as a reliable support level during pullbacks. Market participants are closely watching whether BTC will continue to use this EMA as a springboard for further gains, or if it will falter under selling pressure.
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In addition to the 21-week EMA, the previously broken downtrend line, marked in light blue on the chart, is another crucial area of interest. Bitcoin's price has revisited this zone, testing it for support. The combination of these two support structures could determine Bitcoin's ability to sustain its current bullish momentum.
The Road Ahead for Bitcoin
The market cap is still decreasing, new trends for support and resistance levels are being set because of traders’ action to the existing situation on the market. The 24h trading volume is $45 billion, with overall market caps of $1.21 trillion, indicating that bulls are maintaining pressure on pushing the prices to $60,315.46 barrier level.Bitcoin is currently trading at $61,095.41 with 1.5% decline: the resistance level restrain is $62,310.79.
To date, Bitcoin's short-term forecast remains somewhat favorable. But, these support levels must hold if BTC is to move closer to the higher resistances of $66,000 and up within the year. In a longer timeframe, if price gets below the 21 week EMA and also fails to find support at the broken downtrend line significant retracement may happen.
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