Technical Analysis for BTCUSD for 4th April 2022
Bitcoin Consolidates, will BTC Break above $48.5k?
Past Performance of BTC
The Bitcoin price is consolidating and at breakeven against the USDT at spot rates. In this consolidation, sellers may force prices lower, qualifying the recent breakout as a bull trap. Nonetheless, from price action in the daily chart, the bullish breakout formation above February 2022 highs is still valid. Still, there must be a strong reversal of losses of late last week for buyers to take complete control of the trend.
Bitcoin Technical Analysis
Buyers may have the upper hand in the immediate term because the recent bullish breakout formation still applies.
Nonetheless, in a sideways movement—a possible distribution—the reaction at around $44.5k—marking February highs—and $48.5k—last week's highs--, would determine the short to medium-term trajectory. A close above $48.5k may easily see BTC float to $50k in a buy trend formation, confirming gains of March 27.
As a result of an indefinite price formation, risk-averse traders may wait until there is a breakout in either direction before trading with the newfound trend.
What to Expect of BTC
After encouraging gains, BTC is in consolidation. As aforementioned, the immediate to medium-term trajectory depends on the reaction at key reaction levels.
Resistance level to watch: $48.5k
Support level to watch: $44.5k
Disclaimer: Opinions expressed are not investment advice. Do your research.
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