Bitcoin experienced a rapid 7.30% decline in the early Asian session, leading to the liquidation of $310 million in positions.
Anticipate sustained volatility, particularly with the upcoming US Consumer Price Index (CPI) release and the Federal Reserve's interest rate decision this week.
After eight weeks of continuous bullish momentum, Bitcoin's trend reversed, marked by a red candle, signaling a change in market sentiment and potential uncertainties on the horizon.
According to Coingabbar Technical Analysis, Following an extended period of consolidation and unsuccessful attempts to surpass the $45,000 level, profit booking emerged in the BTC price.
On the 4-hour chart, a Double Top Formation breakout is anticipated, indicating a price decline.
Following a sharp fall from $44,000, BTC found support near $40,400, holding the $40,000 level.
BTC's support is derived from the Ascending Channel pattern.
After a decline, support from the 20-Day Moving Average led to a rebound towards the $42,000 level.
If BTC maintains $40,000 support, recovery is possible with a target at the next resistance of $45,000.
Conversely, a breach of $40,000 by bears may trigger panic selling towards $37,500, approaching the channel support.
KEY LEVELS :
RESISTANCE LEVEL : $42,800-$43,300
SUPPORT LEVEL : $42,000-$41,600
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
