In today’s comprehensive Bitcoin technical analysis, we will first scrutinize the price action of the currency pair in the daily chart. Following that, we will look into what could be next for the BTCUSD by scrutinizing the technical indicators as well as key Fibonacci levels.
Uncertainty Looms as BTCUSD Nears $40,160 Support
At the time of writing, the BTCUSD pair is trading at approximately $42,230, marking a modest 0.4% increase from yesterday’s close. The digital gold has been oscillating within a broad range between $44,750 and $40,160.
The Awesome Oscillator’s divergence has signaled the potential for a trend reversal or a shift to a ranging market. This divergence has led to Bitcoin’s price falling below the bullish channel, and it is now gradually nearing the Ichimoku cloud.
The market is currently in a state of uncertainty. The formation of a double top pattern on the daily chart, coupled with the AO divergence signal, suggests that Bitcoin’s price may test the $40,160 support level in the near future.
Bitcoin Technical Analysis: A Bullish Scenario
The $44,428 level is acting as a resistance. For the bullish trend to continue, it is crucial for the bulls in the BTCUSD market to not only push the price above this resistance level but also maintain stability.