Bitcoin Rejected At $46,000 Resistance May Test The $42,000 Support Soon

Bitcoin is now trading at $43,425 on Bitstamp after the asset scaled the $45,000 mark on Thursday. It was poised to test the $46,800 range but could not scale the $46,000 resistance at the first attempt. This is not really surprising since the $46,000 is a strong resistance.

It is expected that the cryptocurrency would attempt to break the resistance in the next few days, but what was certain from the market sentiment is that the first attempt was bound to face a rejection. The asset has been bullish since the last bounce of $33,500 support in January.

As expected, there was a little sell-off among the bears within the $45,000-$46,000 but the trend remained bullish in the medium term even after the rejection at the $46,000. However, with the rejection, we are expecting a drop to the $42,000 support before the price of BTC would gather enough momentum to test the $46,000 resistance again.

The 200-Day moving average shows that BTC may trade horizontally in the next few days, while the 20-Day MA shows that we should be expecting a lower Bitcoin price in the next couple of days. In general, the market is expected to become very volatile so traders are advised to employ proper use of stops as we experience a downward trend in the interim.

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative reviews.