Exclusive Bitcoin (BTC) Bounces, Stays Afloat Above $50,000

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In Brief
  • Bitcoin has bounced at the $50,225 support area.

  • BTC is trading inside a parallel descending channel.

  • There is short-term resistance at $53,500.

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The Bitcoin (BTC) price was able to bounce and recover slightly from the dip that occurred on March 25.

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Bitcoin is currently trading just below the $53,600 resistance area. Reclaiming this level would be a major bullish development.

Bitcoin Bounces at Support

BTC has been moving downwards since March 13, when it reached an all-time high price of $61,884. 

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On March 25, it reached a local low of $50,427. 

The low was made just slightly above the 0.618 Fib retracement support level at $50,250. Since then, BTC has been moving upwards. 

Despite the bounce, technical indicators in the daily time frame are bearish. 

A bullish reversal in the MACD and/or an RSI cross above 50 would be required for the trend to be considered bullish. 

BTC Chart By TradingView

While it’s not yet confirmed if BTC will eventually make a lower low, the move from the all-time high does not look impulsive at all. This is further confirmed by today’s overlap with the March 16 high. 

Therefore, it’s very unlikely that this is the beginning of a new downward movement. In the most plausible scenario, BTC is correcting in some sort of wave four or sub-wave four, and will eventually make a new all-time high price.

BTC Chart By TradingView

Short-Term BTC Movement

The two-hour chart shows that BTC is trading inside a parallel descending channel. This is often a corrective movement.

Because of this, a breakout from the channel would be expected.  This is also supported by the bullish divergence in both the RSI and MACD.

Currently, BTC is trading right in the middle of the channel. Reclaiming the midline would also cause the RSI to move above 50 and the MACD to turn positive. 

BTC Chart By TradingView

A look at the six-hour chat shows a similar bullish divergence in the RSI. While the MACD has not generated any bullish divergence, it’s close to giving a bullish reversal signal. 

Furthermore, the midline of the channel coincides with the $53,600 resistance area. 

Reclaiming this level would indicate that the low is likely already in and BTC will head higher.

BTC Chart By TradingView

Conclusion

While it’s not clear if BTC will eventually make a lower low, the current drop looks corrective. Therefore, a new all-time high price is eventually expected. 

Reclaiming the $53,600 resistance area would go a long way in suggesting that the upward movement hasn’t stalled.

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 discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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