See More

Bitcoin (BTC) Dips After Briefly Trading Above $52,000

2 mins
Updated by Valdrin Tahiri
Join our Trading Community on Telegram

In Brief

  • Bitcoin has broken out from a descending resistance line.
  • It's trading inside an ascending parallel channel.
  • BTC is facing resistance at $51,600.
  • promo

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.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored