The current Bitcoin price is trading in a confluent area, which is formed by key Fibonacci levels for the 2020-2021 move.
BTC/USD reached a new all-time high of $33,000 in November. It has since steadily fallen, but rebounded off the $33,000 mark and is currently acting as channel support.
As we discussed in Friday’s article the release of a positive NFP report (nonfarm payroll) allowed bears temporarily to drive prices lower before bulls retaliated. This drove price action back over $40,000 and supports the expected move.
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After breaking through channel resistance, momentum for the upward move gained traction. However, it ran into resistance at $44,000 which continues to keep bulls away.
Prices remain at key technical levels as risk sentiment and major events risk continue to drive sentiment. This will likely play an additional role when Bitcoin moves next.
BITCOIN (BTC/USD TECHNICAL ALYSIS
If buyers are unable to gain momentum above the 61.8% Retracement of the $44,000 move, sellers may be able to push prices towards the $36,380 Fibonacci Level by moving back below the 200-day MA and below $40,000
Bulls will be able to break above $44,000 and potentially move towards $50,000 if they retest the January highs of $47,862.
