Technical analysis is an important indicator that investors, especially those trading in the futures market, need to constantly follow in the cryptocurrency market. So what does technical analysis tell us about Bitcoin, which is currently trading at $37,699? Let’s examine the detailed chart analysis and important support and resistance levels.
Bitcoin Daily Chart Analysis
The first notable formation on the daily chart of Bitcoin is the ascending channel formation that has been forming since October 23. This formation structure managed to break the resistance only with the rise on November 9, but the Bitcoin price did not close the daily bar in this region. The support of the EMA 7 (blue line) level after the decline on November 21 could allow the price to gain significant momentum in the future.
The most important support levels to be followed for Bitcoin on the daily chart are respectively $37,256, $36,857, and $36,352. If the daily bar closes below these support levels, it may cause the Bitcoin price to touch the formation support line. However, a daily bar closing below $36,000 could cause the Bitcoin price to lose its upward momentum.
The most important resistance levels to be considered for Bitcoin on the daily chart are respectively $38,007, $38,722, and $39,198. In a bear market, Bitcoin struggles to surpass these levels, which analysts closely monitor, and this situation causes the loss of upward momentum. Currently, the failure to close the daily bar above $38,000 poses a significant danger to the Bitcoin price.
Bitcoin Two-Hour Chart Analysis
The two-hour chart of Bitcoin also shows an ascending channel formation, similar to the daily chart. However, the fact that the resistance breakthrough came with the rise on November 16 and the unsuccessful retest attempt by the price indicates that this breakthrough is a bull trap. Another important point is the consolidation of the Bitcoin price between $37,724 and $37,387 in recent bar formations.
The most important support levels to be followed for Bitcoin on the two-hour chart are respectively $37,387, $36,934, and $36,377. In particular, if the bar closing below the intersecting level of the EMA 200 (red line) and $36,934 occurs, it will cause Bitcoin to lose momentum in the short term.
The most important resistance levels to be considered for Bitcoin on the two-hour chart are respectively $37,724, $37,921, and $38,270. Especially, a bar closing above the unbroken formation resistance line intersecting with the $38,270 level will enable the Bitcoin price to gain significant momentum.
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