Over the last few days, BTC managed to close a daily candle above $36,900, but it couldn't establish this level as solid support. Shortly after breaking through this significant price point, traders began to take profits, causing the price of the leading cryptocurrency to drop back below $36,900.
This wave of selling pressure also pushed BTC below a medium-term positive price channel that had been forming on its daily chart for the past two weeks. During yesterday's trading session, BTC reached a low of $34,800 before recovering slightly to close the session at $35,551.19.
If BTC fails to close today's daily candle above the ascending channel, there is a risk that it may test the immediate support level at $34,100 in the next 24-48 hours. Beyond that, sustained selling pressure could push BTC's price below this level to the subsequent support at $31,400 in the short term.
Conversely, if BTC manages to close today's trading session within the positive channel, it could invalidate the bearish outlook. However, it would need to stay within this channel for the next two days to signal the possibility of another upward move.
Traders and investors might consider waiting for BTC to establish a position above $36,900 before considering a long position. Establishing a strong base above this major resistance level could open up the opportunity for BTC to rise to $39,200 in the coming days.
Nevertheless, technical indicators currently suggest that BTC's price may continue to decline in the next 24-48 hours. The Moving Average Convergence Divergence (MACD) line has fallen below the MACD Signal line over the past three days, potentially indicating that the bearish trend for BTC may not have concluded yet.
Furthermore, the Relative Strength Index (RSI) indicator on BTC's daily chart indicates that bears are currently stronger than buyers. This observation comes after the RSI line crossed below the RSI Simple Moving Average (SMA) line. Given BTC's 32% gain in the past month, a healthy correction may be necessary for it to sustain its upward trajectory.
This wave of selling pressure also pushed BTC below a medium-term positive price channel that had been forming on its daily chart for the past two weeks. During yesterday's trading session, BTC reached a low of $34,800 before recovering slightly to close the session at $35,551.19.
If BTC fails to close today's daily candle above the ascending channel, there is a risk that it may test the immediate support level at $34,100 in the next 24-48 hours. Beyond that, sustained selling pressure could push BTC's price below this level to the subsequent support at $31,400 in the short term.
Conversely, if BTC manages to close today's trading session within the positive channel, it could invalidate the bearish outlook. However, it would need to stay within this channel for the next two days to signal the possibility of another upward move.
Traders and investors might consider waiting for BTC to establish a position above $36,900 before considering a long position. Establishing a strong base above this major resistance level could open up the opportunity for BTC to rise to $39,200 in the coming days.
Nevertheless, technical indicators currently suggest that BTC's price may continue to decline in the next 24-48 hours. The Moving Average Convergence Divergence (MACD) line has fallen below the MACD Signal line over the past three days, potentially indicating that the bearish trend for BTC may not have concluded yet.
Furthermore, the Relative Strength Index (RSI) indicator on BTC's daily chart indicates that bears are currently stronger than buyers. This observation comes after the RSI line crossed below the RSI Simple Moving Average (SMA) line. Given BTC's 32% gain in the past month, a healthy correction may be necessary for it to sustain its upward trajectory.
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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.
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.