BTC/USD Price Setup – Bitcoin Bulls Run into Resistance at $44,000
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Bitcoin, USD Talking Points
- Bitcoin prices run into a wall of resistance at the key psychological level of $44,000
- BTC/USD edges above the 200-day MA (moving average)
- Price action remains conflicted at key Fibonacci levels
Bitcoin bulls lose steam after testing $440,0000
Bitcoin prices are currently trading within a confluent zone, formed by key Fibonacci levels of the 2020 – 2021 move.
Since reaching a fresh all-time high in November, BTC/USD has steadily declined before rebounding off of the $33,000 mark, currently holding as channel support.
As discussed in Friday’s article, the release of a positive NFP (non-farm payroll) report allowed bears to temporarily drive prices lower before bulls retaliated, driving price action back above $40,000, currently providing support for the imminent move.
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However, after breaking above channel resistance, the momentum of the upward move gained traction before running into a wall of resistance at $44,000, a level which continues to hold bulls at bay.
As risk sentiment and major event risk continue to drive sentiment, prices remain between key technical levels which will likely play an additional role in determining Bitcoin’s next move.
Bitcoin (BTC/USD) Technical Analysis
If buyers fail to gain traction above the 61.8% retracement of the above-mentioned move at $44,000, a move back below the 200-day MA (moving average) and below $40,000 may allow sellers to drive prices back towards the $36,380 Fibonacci level.
On the contrary, break above $44,000 gives way for bulls to retest January highs at $47,862 and a potential move towards $50,000.
Bitcoin Daily Chart
Source: TradingView, Chart by Tammy Da Costa
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.