On December 19th, Bitcoin‘s price experienced a drop of approximately 2.64% from its daily high of $43,402 to $42,239. At the time of writing, Bitcoin was trading at $42,363, and recent chart analyses have revealed some striking insights into its potential future movements.
In the two-hour chart analysis, a narrowing wedge formation was observed, with Bitcoin touching the support level on December 18th and successfully breaking through the resistance line in recent bar formations. However, a noticeable decline occurred in the last bar, testing the resistance line as support.
Key support levels to watch on the two-hour Bitcoin chart are $42,218, $41,682, and $41,184. A close below the $42,218 level, intersecting with the formation resistance line, could halt the anticipated upward trend and lead to short-term selling pressure.
On the resistance front, important levels to monitor are $42,911, $43,413, and $44,109. Closing above the critical resistance level of $43,413, especially after the recent upward momentum, could accelerate Bitcoin’s price increase.
The weekly Bitcoin chart continues to show an ascending channel formation since January. The stability of support and resistance lines within this structure is a vital clue for investors. Notably, a touch near the resistance line in early November followed by selling pressure indicates a period that Bitcoin investors should be cautious of. The most significant weekly support levels are $40,324, $36,352, and $34,031, while resistance levels to watch are $44,589, $48,996, and $53,334. A weekly close above the $44,589 resistance could propel Bitcoin to its highest levels in recent times.