Arman Shirinyan
Glassnode highlights four key price levels that traders should not ignore
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Bitcoin’s price is under significant pressure, but Glassnode, a well-known blockchain analysis company, points out that there are four key support levels that Bitcoin traders should not overlook.
According to Glassnode, the bitcoin spot price is slightly above its 111-day moving average (DMA) and 200-week moving average (WMA), which represents an area of support for the cryptocurrency. That puts the first two levels at around $26.2,000. These lines act as price floors where buying pressure could be strong enough to halt or even reverse the recent downtrend.
However, in case of a volatile drop below these levels, analysts point to a confluence of the 365-day and the 200-day as another critical support zone. If the price drops to this level, this area between $22.3k and $22.6k could be a crucial battleground for bulls and bears.
Therefore, these are the four key support levels that Glassnode has identified: the 111-day is $26,200, the 200-day is $26,200, the 365-day is $22,300, and the 200-day is 22,600 U.S. dollar.
Bitcoin price is currently oscillating between the 50-day and 200-day exponential moving averages (EMAs). The trading volume is trending downwards, which could indicate a decrease in trader activity or interest. At the same time, the Relative Strength Index (RSI) is at a low. This could indicate that the downside momentum is slowly fading, potentially paving the way for an upside rally.
These support levels provide a framework for understanding potential price movements and traders and investors should incorporate them into a broader analysis and risk management strategy rather than relying solely on them.
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