The recent struggle for crude oil prices to clear the $80.00 resistance zone has been evident in the market. Despite the recovery above the $78.00 and $78.80 levels, prices faced a downward pressure after spiking above $80.00. Analyzing the 4-hour chart of XTI/USD, it is evident that the price initiated a fresh decline from the 80.26 level, breaking below the $78.80 and $78.00 levels. With a test of the 38.2% Fib retracement level of the upward move from the $72.04 swing low to the $78.26 high, the price is currently testing the 100 simple moving average (red, 4-hour) and is significantly below the 200 simple moving average (green, 4-hour).
The immediate resistance for crude oil prices on the upside is seen near the $78.00 level, followed by the major resistance zone at $78.80. A break above this level could potentially lead the price to accelerate higher and test the $80.00 resistance zone. However, in the case of a failure to break above the resistance levels, the price might witness another decline. The first major support on the downside is identified near the $76.20 level or the 50% Fib retracement level of the upward move. Furthermore, a connecting bullish trend line is emerging with support at $76.15, indicating a potential level of price stability. The next significant support level lies at $75.00, and any further losses could push oil prices towards $72.00 in the upcoming trading sessions.
Shifting the focus to Bitcoin, the cryptocurrency started a recovery wave above the $60,000 level. However, the bears are currently putting up a strong resistance near the $61,500 level, hindering any substantial gains. Despite the potential for a recovery, the price of Bitcoin seems to be facing hurdles in sustaining its upward momentum.
The struggle for crude oil prices to clear key resistance levels, coupled with the current challenges faced by Bitcoin, underscores the uncertainty and volatility in the global financial markets. Traders and investors are advised to exercise caution and closely monitor the price movements to make informed decisions in such dynamic market conditions.
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