Bitcoin reacts after several tests in support
After failing, once again, to break support at $29k, Bitcoin shows a strong, fast and consistent reaction, seeking the earlier resistance zone at $41,000 and returning to the war zone.
The world’s largest digital currency recovers from yet another support test and returns to the war zone – graphic region between the blue and red rectangle (support and resistance).
Along with the price, of course, BTC’s market cap goes back to around $735 billion.
Once again, Bitcoin is graphically in a neutral zone. What determines your path is the breaking of the limits of that zone, both upwards and downwards.
Right now, the price is at the lower limits of the resistance block (between $40,800 and $47,700). This is the big barrier to be broken. Until then, the variation respects the regions of strength and we have a first reaction and upward correction.
The price is now above MA50 on the chart, but still below MA200, meaning also in averages, we are in a neutral zone.
The trend is to navigate within this range between $32-40k. We may have a high volatility sideways zone. Let’s follow.