Bitcoin (BTC) decreased slightly after reaching a local high of $52,000 on Dec 27. However, its bullish structure still remains intact.
On Dec 23, BTC broke out from a descending resistance line that had been in place since the Nov 10 all-time high price.
This suggested that the correction had come to an end. Following this, BTC continued increasing until it reached a high of $52,000 on Dec 27.
However, it has been decreasing since then, possibly returning to validate the resistance line as support. The line is currently close to $48,000.
Technical indicators are mixed. The RSI, which is a momentum indicator, was rejected by the 50-line (red icon). Movements above this line are normally considered bullish.
Therefore, a bullish trend reversal is not yet confirmed.
Current BTC upward movement
The six-hour chart shows that BTC has been trading inside an ascending parallel channel since reaching a low on Dec 4.
On Dec 27, it was rejected by the midline of the channel, which coincided with the $51,600 resistance area (red icons). This initiated the current short-term downward move.
Despite the drop, BTC is still trading inside the channel, whose support line is found near $48,000. As long as it remains in the channel, the bullish structure remains intact.
A look at the hourly chart shows that there is support between $48,000-$48,750. The support is created by the 0.5-0.618 Fib retracement support levels when measuring the most recent portion of the upward movement.
In addition to this, it’s a horizontal support area. Furthermore, it coincides with the support line of the previously outlined ascending parallel channel.
Therefore, if the upward movement is to continue, BTC would be expected to create a higher low inside this level.
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