BTC/USD Trades in a Tight Range as Bitcoin Retests $58.4K Resistance -November 25, 2021
In the last 48 hours, BTC’s price has been trading as Bitcoin retests $58.4K resistance . The price action is characterized by small body candlesticks. The current upward move is facing rejection at the recent high. BTC/USD is likely to fall again as price reaches the overbought region. The current trend is not strong enough to break above the moving averages. A strong rebound above the current support will break above the moving averages.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
Following the recent downtrend, the market has reached bearish exhaustion as Bitcoin fluctuates above the $55,700 support. Since November 22, BTC’s price has been trading in a narrow range between $56,000 and $58,400 price levels. On November 23 and 25, buyers attempted to breach the resistance at $58,400 but were repelled. If buyers were successful above the recent high, the market would have risen and broken above the $60,000 price level.
Subsequent, upside moves are likely to emerge. However, today, Bitcoin is falling after the recent resistance. The cryptocurrency will fall above the $56,000 low and resume upward again. Nevertheless, if the bears break below the $56,000 support and bearish momentum is sustained, BTC/USD will drop to $52,500 or $50,000 support zone. This will result in a deeper downward correction. Meanwhile, Bitcoin is trading at $57,378 at the time of writing.
Crypto’s Price Crashes in India After Crypto’s Bill Announcement
The Indian parliament announced to introduce a list of 26 new bills in the Winter Session, which is called the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. The bill seeks a legislative vote on creating an official digital currency while imposing a ban on “all private cryptocurrencies,” starting on Monday. The announcement of the crypto ban causes the token prices on the Indian crypto exchange WazirX to crash. According to BTC Markets CEO, Caroline Bowler said, “This ban won’t work in the long-term and would be a step backward,” adding that “banning is not an option to protect investor interest.” Bowler stated: “The thing with cryptocurrency is that while governments may try to ban it or try to contain it, the very decentralized nature of the technology somewhat prohibits that.”
Meanwhile, buyers are attempting to push BTC prices above the recent high as Bitcoin retests $58.4K resistance. Today, the bulls are retesting the resistance for the second time. Probably, several tests are needed to break above the resistance. A break above the moving averages and the sustenance of the bullish momentum will signal the resumption of the uptrend.
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