Bitcoin Recovery Hits Key Resistance

Bearish View

• Set a sell-stop at 29,00 and a take-profit at 28,000.
• Add a stop-loss at 32,000.
• Timeline: 1 day

Bullish View

• Place a buy-stop at 30.500 and a take-profit at 32,000.
• Add a stop-loss at 29,500.

The BTC/USD declined sharply in he overnight session as its recovery hit a strong resistance at 31,426. It dropped to 29,500, its lowest level since Saturday.

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Bitcoin Slow Recovery

Bitcoin has been in a narrow range in the past few weeks. In this period, the coin has remained between the important support at $28,368 and resistance point at $31,500.

Bitcoin’s declined happened as stocks and other assets erased earlier gains. On Monday, the Dow Jones and Nasdaq 100 indices rose by more than 0.50% but pared gains towards the close. Their futures show that they have dropped by more than 0.30%.

The coin is falling ahead of the coming Consensus event that will take place in Texas starting from Thursay. This is one of the most important events in the blockchain industry as it features some of the most important players in the sector.

Some of the most notable speakers in this meeting will be Sam Bankman-Fried of FTX, Abby Johnson of Fidelity, Dan Schulman of PayPal, and Changpeng Zhao of Binance. Still, it is unlikely that the event will cause major movements in Bitcoin this week.

The BTC/USD pair is also reacting to the decision by New York politicians to ban Proof-of-Work, which is the technology that allows Bitcoin mining. The bill will now be sent to Governor Hochul, who is expected to sign it into law. Meanwhile, on-chain data shows that there is more inflow among Bitcoin buyers.

BTC/USD Forecast

Bitcoin has been in a tight range in the past few weeks after it crashed to the lowest level in months. It has already dropped by more than 50% from its all-time high while the total market cap has dropped to about $600 billion.

On the four-hour chart, we see that the pair dropped sharply after it hit the important resistance at 31,426.As it dropped, it moved below the 25-day and 50-day moving averages while the MACD has dropped below the neutral point.

The BTC/USD pair is also slightly below the 23.6% Fibonacci retracement level. Therefore, there is a likelihood that the pair will continue its bearish breakout as bears target the key support at 28,500.A move above Monday’s high of 31,426 will invalidate the bearish view.