The most popular cryptocurrency, Bitcoin, has reversed some of its gains from its 18-month peak, causing a mixture of cautious optimism and market scepticism.
The cryptocurrency, which had witnessed a significant increase in value over the previous several months and reached a peak around $38,400, somewhat declined, igniting discussions about where its value will go from here.
Veteran trader Scott Redler’s technical research indicates that Bitcoin has not been able to establish a foothold over the crucial $38,000 resistance level. According to statistics from CoinGecko, the price of Bitcoin is now $37,041.
Momentum meets resistance
The surge of Bitcoin to more than $38,000 was a sensational occurrence characterised by the enthusiasm of investors and an optimistic outlook on the market.
But as Redler’s investigation reveals, it was challenging to maintain this high. The fundamental impetus hasn’t completely diminished despite the recent decline.
Experts in the market cite the substantial transaction volume and Bitcoin’s continuous resistance over $30,000 as proof that the cryptocurrency is not yet ready to give up its gains.
The critical support
Redler says dealers have to stick to strategic planning. In order to mitigate risks in this turbulent market, active traders are encouraged to think about moving their stop to $34,900.
According to the present pattern, there are a number of proven support and resistance levels, with $28,100 emerging as a crucial support during the most recent rise.