Exclusive Bitcoin (BTC) Bounces Back, Aiming for Higher Prices

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In Brief
  • Bitcoin is trading inside a short-term parallel channel.

  • Weekly technical indicators have begun to show weakness.

  • There are support levels at $53,570 and $50,250.

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The Bitcoin (BTC) price has been increasing since pivoting on March 25.

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Bitcoin is expected to break out from the current short-term descending parallel channel. A short-term decrease could transpire prior to the breakout.

Weekly Outlook for BTC

The weekly chart shows that BTC created a hanging man candlestick last week. While this can be seen as a sign of weakness, BTC also created a long lower wick, a sign of buying pressure. 

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Nevertheless, technical indicators have begun to show weakness. The MACD has created the first lower momentum bar since September 2020. 

However, the weakness is not sufficient to call for a reversal. While the RSI generated a bearish divergence, a drop already occurred as a result. In addition, the Stochastic oscillator is decreasing but has yet to make a bearish cross.

BTC Chart By TradingView

Ongoing BTC Bounce

The weekly chart shows that BTC has been decreasing since reaching an all-time high price of $61,884 on March 13. 

The downward move ended with a pivot on March 25. This occurred right at the 0.618 Fib retracement level of $50,250. The next day, BTC created a bullish engulfing candlestick. 

Technical indicators in the daily time-frame, however, still lack conviction. While the RSI has crossed back above 50, the MACD and Stochastic oscillator are bearish. However, the latter is showing signs of a potential reversal.

BTC Chart By TradingView

Short-Term Channel

The two-hour chart shows that BTC has been trading inside a descending parallel channel since reaching the aforementioned all-time high price. 

This is often a corrective movement. Therefore, a breakout from this pattern would be expected.

BTC still has yet to drop to the 0.382 Fib retracement level. This would be a normal occurrence after a short-term upward movement. 

Therefore, it’s possible that BTC drops to $54,300, or potentially $53,570, before resuming its upward movement. A breakout from the channel is expected.

$53,570 is the 0.5 Fib retracement level and is just above the middle of the channel. A decrease below this level would put the short-term bullish trend in doubt.

BTC Chart By TradingView

Conclusion

It’s likely that BTC continues the bounce that has been ongoing since March 25. This could cause a breakout from the short-term parallel channel.

While the long-term chart has begun to show weakness, a potential top has not yet been confirmed.

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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