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Bitcoin (BTC), the top cryptocurrency by market cap, is currently testing a key technical level that could decide its short-term direction, as it is approaching the middle line of the Bollinger Bands on the daily time frame. That is a zone often seen as a pivot between bullish and bearish phases.
The key level to watch is $83,368, which is the middle band of the Bollinger Bands indicator. After going down for a while, Bitcoin is trying to get back up, trading just below this threshold. If it can get past the middle band, it could be a sign that a bullish mode might be on.
Yuri MolchanThis recent bounce from the lower Bollinger Band around the $77,500 mark indicates some temporary buying interest, but the resistance at the middle band remains unbroken as of the latest daily close.
This band has been a kind of dynamic resistance during the recent downtrend, and the current test could either confirm continued pressure or open the door to a stronger upward move.
The Bollinger Bands have also gotten narrower recently, which is a sign that things are less volatile. This often happens before a stronger trend, so the current setup is important. If Bitcoin can break above $83,368 and keep going, it might hit the upper band near $89,200, and triple the optimism.
But if it cannot get back above the middle band, it might make overall sentiment more negative and push the chance of another test of recent lows up.
Godfrey BenjaminThe result of this test could shape the price of Bitcoin in the next few sessions, making it one of the most important technical developments of the week.
Vladislav Sopov
Dan Burgin