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What are the next medium-term levels of support and resistance to Bitcoin?

Today, the crypto market has returned to its previous trading ranges after the jump in volatility yesterday. Despite the sudden outbreak of volatility, the cryptocurrency market remains virtually unchanged on a daily basis. The total capitalization of digital assets in circulation amounted to $ 120.9B today versus $ 120B on Tuesday.

The main cryptocurrencies returned to their ranges after the weekend, when the update for Ethereum network upgrade failed to generate a change in price action.

The major cryptocurrencies are expected to fall today as investors’ sentiments have fallen as a result of a comment from Bank of England Senior advisor who said cryptocurrency is worthless because it fails to pass the fundamental tests of financial services. However, digital assets can restore the price beyond critical levels of resistance if Wyoming’s lawmakers attempt to pass a bill that recognizes digital currencies as money is approved.

Still, the bulls or bears will be able to overtake the crypto market in the short and long term?

Bitcoin’s price rose by nearly 1.60% over the past 24 hours. The first digital coin tested the critical level of $ 3 600 on Tuesday, but the resistance seems to be too strong for the bulls till now. Some crypto experts believe Bitcoin’s price recovery is limited due to the weak demand caused by the strong bear market in 2018.

But I think the year 2019 that is ahead of us will be essential to Bitcoin no doubt. After more than ten months of continuous fall, I think the next 12 months will be crucial for Bitcoin’s long-term future.

Everything seems ready for a big bounce when we talk about short and medium-term prospects. The nearest bull’s target in the event of a bounce is $ 4 120. This is where the price has already been rejected several times by EMA 200 on a weekly chart. Clear break and close over the weekly EMA 200 will indicate a strong upside momentum and may cause a big bullish rally. In this case, the next resistance is in the area of $ 4 750 – 4 900.

Again, watching the weekly chart, the MACD and RSI indicators look good for the bulls. RSI touches the level 30 and is ready to pick up an upside impulse while there is a large bullish divergence on the histogram of the MACD.

In the long run, however, we still do not have strong signs of reversing the main trend. And the predominant trend remains a downside. If bears return control, the first medium-term target is in the area at the bottom of mid-December at $ 3,158. A clear break below this zone will send a very negative message to the market, and the $ 2,000 region will be the next goal.

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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