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Over the past 24 hours, Bitcoin has made another attempt to grow. After a little trading, volumes entered the market again, the result of the influence of which was the achievement of the first cryptocurrency at $37,800.
Can this be considered a turnaround? No. Buying activity has already begun to decline, and BTC has not only set a new high, but has not even got out of the current local downtrend. The first cryptocurrency needs to consolidate above $38,000, however, even above this level, another resistance range will await it.
The current bullish bounce is dictated by the nature of the movement within the descending expanding channel. The price moves from its lower border to its upper one and vice versa, throughout the entire decline scenario. The current increase was due to the fact that recently, BTC was at the lower boundary of the expanding trading channel, which provoked a decrease in activity from the bears.
Initially, when falling, the largest digital asset very quickly broke through levels such as $38,000, $35,000 and $33,000. Now, the bears need to fight again for these price zones, finally seizing the initiative over them.
Crypto winter continues. No price asset can rise indefinitely. As it cannot fall endlessly. The current anomaly is nothing more than a logical corrective wave within the bear market.
This statement is supported by the strongly reduced purchasing activity, the inability of the asset to get out of the bearish “G&P” pattern, as well as the fact that during the recent bullish rebound, the price of BTC could not even reach those levels that are the upper limit of the local downtrend . In fact, the buyers lost strength as soon as they reached the middle of the trading channel, without even trying to announce the possibility of further growth.
The situation with Ethereum has not changed much. The second largest cryptocurrency by capitalization froze at the resistance, dictated by the lower boundary of the downward trading channel.
There is a high probability that the price level of $2,300 will be broken very soon, followed by another dump. In this case, the next resistance for ETH will be the range around $1800-$2000.
Do not forget about stop losses and do not neglect risk management.
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