Introduction
Bitcoin (BTC) faces an uphill struggle to reignite its uptrend after experiencing its biggest one-day losses of 2023. The largest cryptocurrency is attempting to recover lost ground after falling to lows of $40,200, leaving traders and analysts closely watching key support and resistance levels.
Bollinger Bands: BTC Bounced "Where it was supposed to"
Bitcoin's recent price dip, while painful for some, offered a much-needed reset for the crypto markets. John Bollinger, creator of the Bollinger Bands volatility indicator, noted that the dip stopped right where it was supposed to, providing cause for optimism. The correction took Bitcoin to the middle band within the Bollinger channel, suggesting a textbook move and signs of strength.
Large Bitcoin Buyers May Play "Buy the Dip, Sell the Rip"
After the dip, there are signs that institutional-sized bids are returning, potentially indicating increased demand from large-volume traders. However, it remains unclear whether these buyers are genuinely accumulating at these levels or simply taking advantage of price dips and selling rallies. The upcoming Federal Reserve interest rate decision and speeches by Chair Jerome Powell could introduce volatility into the market.
Analyst: Bitcoin Will Greet Yearly Close in "New Range"
Popular traders and analysts have identified key support and resistance levels to watch. The range around $38,000 is considered a strong support level, while resistance walls at $43,850 and $46,400 could impede Bitcoin's uptrend. Some analysts believe that Bitcoin will establish a new trading range before the end of the year.
This article does not contain investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.
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