Bitcoin works for the Make-AR-ORAK price resistance set above 88 thousand dollars. What next?

This is a daily technical analysis by Coindsk analyst and omkar Godobile legal technician.

Bitcoin (BTC) progress faced a resistance area of ​​more than $ 88,000, characterized by decisive levels that could make or break the continuous recovery process.

The first level and perhaps the most important resistance group is the simple moving average for 200 days (SMA) at $ 88356. SMA is widely an indication of long -term momentum. Early this month, Coinbase’s institutional analysts The name The negative break of SMA for 200 days in March is a sign of the appearance of the potential encoded winter.

Therefore, a new step can be taken over SMA, which lasted 200 days to represent a renewed bullish transformation in the momentum.

Such a step would lead to a double outbreak, as the upper end of Ichimoku Cloud is located near SMA for 200 days. It is said that a step above the Ichimoku cloud also reflects a bullish shift in the momentum.

It was developed by a Japanese journalist in the 1960s, a technical analysis index that provides a comprehensive vision of market momentum, support and resistance levels. The index includes five lines: the leading A, lead in the period B, the transfer line, the Tenkan-Sen (T), the foundation line or Kijun-Sen (K) and a backward closing price line. The difference between the leading Span A and B Ichimoku cloud.

The third and last level that constitutes the resistance group is an increase of $ 88,804 on March 24, as the market decreased and decreased to $ 75,000.

The area of ​​resistance to making or breaking?

The behavioral aspects of trading when the assets approach the resistance area, especially in the main levels such as SMA for 200 days and Ichimoku cloud.

PROSICT theory indicates that people are usually risky in terms of gains and pursuit of risk in terms of losses, known as the “impact of reflection”. Therefore, as traders, people tend to be more than risks while locking profits and continuing to lose open trades.

This trend is amplified when assets face a large resistance area. Traders who entered the Bitcoin market may feel about $ 75,000, expecting a recovery, for their pressure to achieve profits as the price approaches this resistance. This sale in turn can slow down the price or even lead to a new decrease.

On the contrary, if Bitcoin succeeds in penetrating the resistance area, the fear of losing it can push more traders to make bullish bets, increase bullish momentum and pay the price up.