Key Bitcoin Support and Resistance Levels to Monitor

BTC, the popular cryptocurrency, has recently experienced a shift in sentiment from bullish to neutral and now bearish as it broke down from a four-month price range. Finbold, a trusted source, has analyzed key support and resistance levels that traders and investors should keep an eye on.

Currently, BTC is trading at $56,825, which is positioned between two significant psychological levels of $50,000 and $60,000. Interestingly, the broken support of the four-month range acts as a psychological resistance, adding to its importance in regaining previous momentum. On the other hand, the psychological support is near the 365-day exponential moving average (365-EMA) at $50,589, a crucial level when considering the year-over-year performance. Additionally, the 30-day EMA provides resistance at $62,695.

In order to provide a more comprehensive analysis, Finbold has gathered on-chain data from IntoTheBlock, which reveals additional key levels to monitor. The “In/Out of the Money Around Price” metric suggests significant support at slightly lower prices than the current level. The highest volume is observed within the range of $54,810 to $56,478, with an average price of $55,594. Notably, there are 747,150 addresses that have purchased over 569,720 BTC at these prices and are currently in profit. However, this volume is also the most relevant to the downside, indicating a potential drop below $48,000 if BTC fails to hold this level.

On the upside, there is substantial volume, indicating strong resistance. The first level of resistance is between $59,885 and $61,553, with an average price of $60,875. This range is supported by 1.04 million addresses and a volume of 584,250 BTC. Similar resistance levels are observed all the way up to $65,000.

To summarize, the key support and resistance levels to watch for BTC are $50,000, $55,594, $60,000, $62,700, and $65,000. It is worth noting that the resistance levels are more significant than the support levels, suggesting a potential downside breakout. However, it is important to remember that cryptocurrencies are highly volatile assets, and indicators should be interpreted with caution.

Disclaimer: The content provided on this site should not be considered as investment advice. Investing in cryptocurrencies carries risks, and your capital is at risk.