Bitcoin Fails to Break $45,000 Resistance 7 Times in Row: Technical Analysis

article image

Arman Shirinyan

Track live crypto price of 10000+ coins!

Bitcoin struggling to get to new highs since the beginning of the year

Bitcoin’s run in March may have seemed like a relief rally that would bring the first cryptocurrency back to the top and become the beginning of a new long-term uptrend, but unfortunately for the market, BTC failed to reach $50,000 and break through for the seventh time in a year.

Not a good tendency for Bitcoin

The seven failed resistance tests in a row may not reflect well on Bitcoin’s attractiveness as an investment asset, as it most likely has no financial support behind it to reach new highs. The first test of the $45,000-$50,000 price range took place back at the end of December 2021.

Closer to the end of the month, Bitcoin retraced down to $40,000, marking it as the first failed run to prices above $50,000. Since it was the first reversal attempt for Bitcoin that tumbled down from the ATH, traders and investors were not ready to support the rally right away.

Related:  Crypto Has “Found a Floor” Thanks to Ethereum Merge: JPMorgan
Bitcoin Chart
Source: TradingView

The second test of the new range was made in January but also failed due to the absence of purchasing power. As another attempt to rally up failed, Bitcoin dropped even further to $35,000, causing a massive outflow of funds from the cryptocurrency market.

Bitcoin’s next test happened at the beginning of February when the digital gold reached $45,594 and then dropped once again to $36,000. During a month of moving in the rangebound, Bitcoin tested the $45,000 resistance many times until breaking it at the end of the month.

The most recent run to $50,000 failed at $48,000, which was an unpleasant surprise for a cryptocurrency community that had been expecting a rally to new highs but instead got a reversal below $40,000.

Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: