Main to remember
- Bitcoin retired below $ 95,000 on Sunday for concerns about the potential impacts of the prices announced by the Trump administration on Canada, Mexico and China.
- The price of the cryptocurrency sculpted two peaks to the same level between December and January, potentially forming a double top, a classic graphic model which signals a downward reversal.
- Investors must monitor the crucial support levels on the Bitcoin graph of $ 92,000, $ 87,000 and $ 74,000, while monitoring a keyword area nearly $ 106,000.
Bitcoin (BTCUSD) withdrew below $ 95,000 on Sunday for concerns about the potential impacts of American prices imposed on products from Canada, Mexico and China.
The sharp drop in the price of bitcoin follows the announcement of President Donald Trump that the United States will impose 25% prices on Mexican imports and most Canadians, and 10% on all goods from China, in from Tuesday. Investors consider prices as inflationists, which could prevent the Fed from reducing reduction rates this year, thus exerting downward pressure on interest -free assets like Bitcoin.
Since he set his record last month, Bitcoin has dropped by about 15%, the cryptocurrency that recorded his third consecutive day on Sunday and reaching a hollow of three weeks. However, it has always been negotiated 35% higher since the US elections at the beginning of November on the expectations of a possible strategic bitcoin reserve and a more favorable regulatory perspective under a white house and a friendly congress.
Below, we take a closer look at the Bitcoin graphic and apply a technical analysis to identify the crucial price levels to monitor.
Double potential
The Bitcoin price has sculpted two peaks to the same level between December and January, potentially forming a double top, a classic graphic model which signals a downward reversal.
In addition, as cryptocurrency did a little higher last month, the relative resistance index (RSI) made a relatively cheaper peak to create a downward divergence between the price and the indicator, pointing to the Decline of the purchase.
Identify three crucial levels where the price of bitcoin can attract support and also highlight a key aerial zone to monitor during any declines.
Crucial support levels to monitor
The first level to monitor is about $ 92,000. This area provides a confluence of support for an upward trend line which dates back to the hollow of September of last year and a range of similar prices on the table between November and January. The price fell below this key level at the end of Sunday, but has since recovered the region.
Further on, the decline could see a drop in the level of $ 87,000, a location where digital currency can meet a support near the bottom of a pennant model which formed on the graph according to the initial post-election pop cryptocurrency.
Decisive ventilation below this level would prepare the ground for a greater drop to around $ 74,000. Investors who promote purchasing and maintenance strategies can seek entry points into this region near the eminent March 2024, which is also aligned closely with the end of October.
Key ceiling area to be monitored
During the increases, investors should keep an attentive eye in the $ 106,000 area. This location is likely to draw significant attention near the December and January peaks. A break supported by a convincing volume above this key technical level would invalidate a higher double model and could see Bitcoin continue its longer term trend.
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