BTC Charted a Bearish Double-Top, Now Facing Critical Support (Bitcoin Price Analysis)

Bitcoin faced resistance at $45K after the green days. Bitcoin was heavily rejected by the global markets and fell below $42K.

The Stablecoin Supply Ratio shows that there is significant ‘dry powder’ left over, which indicates the potential buying power. The price action is currently experiencing a pullback to the most recent crossed dynamic resistance level. This short-term correction is a positive step towards a steady price recovery.

Technical Analysis

By: Shayan

The Daily Chart: Long-Term

Bitcoin is now in a mini rally, starting at $37.2K with solid daily green candles.

The bullish momentum is now weaker. The descending purple trendline and the $45K resistance zone were both responsible for the price rejection on Thursday.

BTC is currently in a correction phase. It is testing the 50-day MA ($42.2K), which resembles a pullback. BTC’s latest correction is not surprising considering that it has reached a new high following a long-lasting bearish trend. This increases the likelihood of a trend reversal.

To complete the healthy reversal structure, Bitcoin must make a lower low in the corrective phase.

The 4-Hour Chart: Short-Term

After reaching the previous pivot at $45K resistance, the price charted a double top pattern. This is a common bearish sign. There are two possible outcomes:

As stated before, the price will be rejected at resistance. This will deepen the correction and cause a drop to lower levels. The next major resistance will be around $52K.

The bearish double top pattern, which is bearish, and the diminishing bullish momentum make the first scenario more probable.

Onchain Analysis

By Edris

Below is a chart showing bitcoin price (white), 7 day MA (yellow) and 28 day MA (blue), respectively, of Stablecoin Supply Ratio.

SSR is calculated by subtracting BTC’s total market cap from the combined market cap of all stablecoins. SSR is a measure of liquidity. It indicates whether there is sufficient buying power to push the price up relative to BTC’s market capital.

Over the past year, potential bearish and bullish waves were signaled using the MA Cross indicator with good accuracy. After a few months’ correction (since November’s ATH), SSR MA Cross now shows a bullish signal. This could indicate an end of this bearish leg.

This indicator should not be used for decision-making alone, but it has been quite accurate in the past few months.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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