VOT Research Desk
After a brand-new week, the price of bitcoin is currently having trouble getting over a little obstacle. When examined more closely, it becomes clear that BTC has the ability to start a rally but is unable to do so despite the absence of upside resistance.
A bearish divergence would arise if this trend persisted and allowed four-hour candlestick closures to create a local peak at this point.
When the price of Bitcoin makes a higher high and the momentum indicator, the Relative Strength Index, makes a lower high, a technical formation is formed.
This deviation from the norm signals a weak basis for price appreciation and frequently results in an uptrend reversal.
Despite the fact that this trend may appear negative in the near future, a regression to $16,704 will allow sidelined purchasers to stockpile BTC at that price. If purchasing pressure picks up again at this point, Bitcoin price may begin its next rally and retest significant resistance at $17,593 and $19,235.
The latter level, known as Point of Control (POC), is the most actively traded level in 2022 and is anticipated to exert tremendous selling pressure. This barrier is therefore an excellent level to book profits.
In this case, 1.12 million addresses that bought 450,800 BTC are “Out of the Money.
Investors should be aware that, even though the future for the price of bitcoin is unquestionably favorable, a retreat that goes above the $16,500 mark is a warning of weakness.
The bullish thesis for BTC will be invalidated if the four-hour candlestick closes below $15,894 and a lower bottom is made.
Bitcoin’s price could drop to its low point of $15,443 from November 21 as a result of such a development.
