Exclusive Bitcoin (BTC) Creates Higher Low After Monumental Correction

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In Brief
  • Bitcoin has bounced at the $30,000 support area.

  • BTC is facing resistance at $41,200 and $48,200.

  • The price is following a short-term descending resistance line.

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The Bitcoin (BTC) price decreased considerably last week, reaching its lowest levels since Jan. 2021.

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However, it has managed to create a higher low above the $30,000 support area.

Weekly BTC Levels

Last week, BTC created another bearish candlestick. The decrease took it to the $30,000 support area that was created in January 2021. 

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The price has recovered slightly since and is attempting to reclaim the $34,300 area. This is the 0.5 Fib retracement level of the entire previous upward movement. It has yet to reach a close below this level amid the current correction. 

However, technical indicators are decisively bearish. The RSI has crossed below 50 while the Stochastic oscillator has made a bearish cross. Furthermore, the MACD is close to turning negative.

BTC Chart By TradingView

Ongoing BTC bounce

The daily chart is similarly bearish. 

The MACD is negative, the Stochastic oscillator is decreasing, and the RSI is in oversold territory.

However, there is a bullish divergence developing in the RSI, which is in the process of crossing above 30. In addition, this has been combined with two long lower wicks, both signs of buying pressure.

The closest resistance levels are found at $41,200 and $48,200. These are the 0.382 and 0.618 Fib retracement resistance levels, respectively.

BTC Chart By TradingView

Short-term movement

The six-hour chart appears to be more bullish. 

It shows a very pronounced bullish divergence in both the MACD and RSI. The former is very close to crossing into positive territory. 

This is a possible sign of a trend reversal, at least in the short term.

BTC Chart By TradingView

The two-hour chart shows a potential descending resistance line in place. 

However, similar to the six-hour chart, both the MACD and RSI have generated an even more significant bullish divergence. The MACD has also crossed into the positive territory. 

As a result, a breakout from the descending resistance line is likely.

BTC Chart By TradingView

Conclusion

Bitcoin is expected to break out from a descending resistance line and gradually increase towards the resistance levels at $41,200 and possibly $48,200.

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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