Bitcoin’s daily chart shows a key technical shift with the loss of the 200-day moving average (red line), which is now acting as resistance. The 200 MA had been a crucial support level throughout the recent correction, but Bitcoin failed to hold above it, reinforcing bearish pressure.
Price dropped as low as $80,027 before bouncing strongly, indicating buyers are stepping in at lower levels. However, the 200 MA will remain a major barrier that bulls need to reclaim to shift momentum back in their favor.
A potential bullish divergence is emerging on the RSI – price made a lower low, but RSI held a higher low and is now rising from oversold territory. This would be confirmed with a clear upward elbow on the RSI and a higher close today, which could signal that the downtrend is losing strength.
Volume on the recent bounce has been relatively strong, suggesting that buyers are defending lower levels. For bulls to regain control, Bitcoin needs to close back above the 200 MA and reclaim the $85,000 support level. Failure to do so could lead to a retest of the recent lows around $80,000 - or down to the low 70s as many are predicting.
Price dropped as low as $80,027 before bouncing strongly, indicating buyers are stepping in at lower levels. However, the 200 MA will remain a major barrier that bulls need to reclaim to shift momentum back in their favor.
A potential bullish divergence is emerging on the RSI – price made a lower low, but RSI held a higher low and is now rising from oversold territory. This would be confirmed with a clear upward elbow on the RSI and a higher close today, which could signal that the downtrend is losing strength.
Volume on the recent bounce has been relatively strong, suggesting that buyers are defending lower levels. For bulls to regain control, Bitcoin needs to close back above the 200 MA and reclaim the $85,000 support level. Failure to do so could lead to a retest of the recent lows around $80,000 - or down to the low 70s as many are predicting.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.