BTC Price Reaches Overbought Region as Bitcoin Faces Rejection at $40K- February 25, 2022
Today, buyers are unrelenting as they continue to hold above $39,000 as Bitcoin faces rejection at $40K. The resistance zone is an overbought region of the market. In a strong trending market, BTC/USD will scale above the resistance zone. Bitcoin is trading at $39,406 as of press time.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
Bitcoin bulls are making frantic efforts to break above the $39,000 resistance. In the lower time frame, BTC price is making a series of higher highs and higher lows. Since February 24, BTC’s price has remained above the $39,000 high. Buyers have not been able to sustain the bullish momentum above the $39,000 high. Today, BTC’s price has reached the high $40,330 but the bears push Bitcoin to the $39,115 support. On the upside, if BTC’s price rebounds above the $39,115 support, the market will rally to $45,000. As usual, the bears will provide stiff resistance at the $45,000 high. Nonetheless, a break above this crucial resistance will catapult Bitcoin above the $50,000 psychological price level. In the meantime, Bitcoin is trading in a range between $35,000 and $39,000 price levels. The bullish scenario will be invalidated if the bears break below the $35,000 support.
Senator Ted Cruz Proposes for Bitcoin Adoption in the United States
During his Conservative Political Action Conference (CPAC) speech on Friday, Senator Ted Cruz has joined his American politicians to demand for Bitcoin adoption. Cruz indicated that he is very bullish on Bitcoin because it is decentralized and cannot be controlled by any government or entity. He gave a good example of the current crisis in Canada where the government has imposed emergency laws against the Freedom Convoy trucker’s protest against COVID-19 mandates. The Canadian government requested financial institutions and banks to freeze the accounts of protesters. Similar orders were given to crypto exchanges and crypto wallet service providers to do the same. The Bitcoin wallet service provider has indicated that they don’t have access to any of its users’ financial information beyond their email addresses.
Meanwhile, BTC/USD is likely to retrace as Bitcoin faces rejection at $40K. The bears will attempt to push Bitcoin to revisit the previous low. Nevertheless, on February 22 downtrend; retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicated that BTC will fall but will reverse at level 1.272 Fibonacci extension or $34,231.40. Bitcoin has already reversed and resumed upward.
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