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Bitcoin Technical Analysis: $38K Resistance Level Holds BTC Back

Between November 16 and 17, 2023, bitcoin (BTC) witnessed a notable shift in its value, exhibiting a price swing from $35,579 to $37,904 within a 24-hour span. Currently, the turbulent market activity has stabilized, with bitcoin trading at $36,387 per unit.

Bitcoin

On November 17, 2023, bitcoin (BTC) is hovering at $36,387, after undergoing a day of fluctuating trade. The current relative strength index (RSI) is at 60, portraying a balanced, mellow market posture. Meanwhile, a blend of sell and buy signals is emerging from the exponential moving average (EMA) and simple moving average (SMA) across various timeframes.

Prior to Friday’s market activities, bitcoin demonstrated an upward trend, signaling heightened buyer interest on Thursday. Yet, reaching a high near $37,975 triggered a notable drop, suggesting either a corrective phase or the onset of a trend reversal. Present market dynamics once again point towards a cautiously optimistic approach to the weekend’s trading strategies.

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Opportunities for initiating long positions may arise if bitcoin’s price decisively breaks above its recent consolidation peak, especially if it crosses $36,500. Such movements should ideally be backed by an uptick in trading volume for confirmation. For long trades, aiming for an exit near the earlier peak of $37,975 seems prudent, considering this level as a possible resistance zone.

Conversely, should the price not maintain its stance above these consolidation figures, a short position with a target near the prior support level of $35,000. The market’s moderate confidence still reflects its underlying strength but also signals a need for prudence, given the possibilities of consolidation or reversal. Though there have been fleeting instances of calm, the market can rapidly transition into periods of significant fluctuations in its dynamics.

Bull Verdict:

Bitcoin’s performance on November 17, 2023, despite its volatility, still leans towards a positive trend. The day’s high of $37,904 and the closing price above the key psychological level of $36,000 suggest a resilient bullish sentiment.

Bear Verdict:

The bearish perspective on Bitcoin’s November 17, 2023, performance is rooted in its significant price fluctuations and failure to sustain gains above critical resistance levels. The trading day’s wide range and closing below the day’s high point to potential exhaustion among buyers.

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What do you think about bitcoin’s market action on Wednesday? Share your thoughts and opinions about this subject in the comments section below.


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