After rapidly surging to above $4,200 before plummeting back below $4,100 on Saturday, Bitcoin (BTC) has been able to incur some upwards momentum that has allowed it to tepidly move above $4,100.
It is important to note that Bitcoin’s strongest level of resistance exists at $4,200, but analysts are expressing cautious optimism regarding the current state of the cryptocurrency’s price.
Bitcoin Breaks Above $4,100 After Yesterday’s Volatility
At the time of writing, Bitcoin is trading up marginally at its current price of $4,105. Over the past couple of weeks, $4,100 has proven to be a level of resistance for BTC, and it is unclear if the crypto’s bulls will garner enough buying pressure to flip this price into a level of support going forward.
Yesterday, Bitcoin experienced large volatility that entailed a sudden surge to $4,230 that was immediately proceeded by a drop to below $4,100. This price surge was strikingly similar to one seen in late-February, where BTC surged from $3,900 to $4,200 before spiraling downwards towards $3,700.
These two price moves have made it clear that $4,200 is a strong level of resistance, and that Bitcoin will require a significant influx of buying pressure to propel its price above this level.
Chonis Trading, a popular cryptocurrency analyst on Twitter, recently shared his thoughts on Bitcoin’s price action in a short video, noting that BTC faced resistance at its upper Bollinger Band, but still is technically in a bullish trend.
“$BTC – quick update on #bitcoin daily chart… Current rejection off upper BB, with spinning top candle formed after finding support from previous range rejection area now turned support…RSI Stoch, MACD, still bullish trending with slowing momentum,” he explained.
Bitcoin Struggles to Break Above Yearly Downwards Resistance Level
Over the past year, Bitcoin has been caught below a downwards resistance level which has continued to put bearish pressure on BTC’s price.
The Cryptomist, a popular cryptocurrency trader on Twitter, discussed this resistance level in a recent tweet, noting that she expects the crypto to face one more downwards break before it garners enough buying pressure to break above this resistance level.
“$BTC Weekly resistance right on the money! The daily candle is being rejected by the downtrend resistance that has held us in for a year… Double top on RSI suggest we may not break right now… My gut feeling – need 1 more leg down before break… When we do break, long green candle,” she explained.
As the new week begins, it is likely that traders and analysts alike will discover whether or not $4,100 will be established as a fresh support level, and whether Bitcoin will continue to struggle to break above $4,200.
