Like the consolidation in May-July 2021, the market is forming a substantial supply/demand level in the $40K-$42K range. Aside from the short-term cost trend, the mentioned region will be a significant support (or resistance) for long-term cost actions.
Several analysts believe the $40K-$42K zone resembles the $30K-$32K range in May-July. Considering that December 5th, the $40K-$42K zone acted as good assistance.
But , considering the low need in the spot market, bitcoin can see lower prices issue strong support fails (bitcoin closes a daily candle beneath it). The Fibonacci ranges are shown in a every day time frame. The 0. 382 Fibonacci level and the crimson zone that covered one another make a strong resistance associated with $50K-$51. 5K.
Source: TradingViewIt seems that there will be some offering pressure for this level in the event that bitcoin touches this level of resistance.
Despite an optimistic move in price during a week ago, bitcoin could not break over $44. 5K. As the graph shows, there are multiple levels of resistance on the way up to $50K. BTC was rejected by many, which crossed each other plus made $44. 5K-$45K a strong barrier.
Source: TradingViewIn the 4-hour time frame, bitcoin shattered out the bearish development line (orange line). It would appear that the pullback has been finished, and the cryptocurrency can make an additional attempt to break the $44. 5K-45K resistance in the arriving day.
Order Book Evaluation
Bitcoin HeatmapConsidering the heat chart for open limit purchases, it is clear that FTX played an influential role within recent price actions because the market crashed to 40K (Dec 2021). There are many good examples where the price reacted for this exchange’s buy/sell walls. Consequently , it might be wise to monitor this particular order book for near-future price actions.
The Specialized Analysis is prepared by N_E_D_A.
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Cryptocurrency charts by TradingView.
Labels: Bitcoin (BTC) Price
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Full-time on-chain Data Analyst and Python Programmer. Passionate about Bitcoin plus DataVisualization. Contact: Twitter