The Bitcoin (BTC) price has decreased considerably since April 18.
BTC has bounced back some since and is currently attempting to create a short-term higher low. Doing so could potentially initiate an upward movement towards the short-term descending resistance line.
BTC Bounces At Support
BTC has been moving downwards since April 14. The drop accelerated on April 18, causing a fall to a low of $50,931.
However, this created a very long lower wick, validating the $51,000 area as support.
Technical indicators have turned bearish. The MACD has crossed into negative territory, the RSI has crossed below 50, and the Stochastic oscillator has just made a bearish cross.
Nevertheless, it’s bounced significantly since the lows and is attempting to create a higher low.
The trend can be considered bullish as long as the price is trading above the $51,000 support area.
Short-Term BTC Movement
The two-hour chart shows that BTC is following a descending resistance line.
It has been doing so since the aforementioned all-time high price on April 14. So far, it’s made three unsuccessful breakout attempts.
A closer look shows that BTC is also attempting to find support and create a higher low.
Technical indicators support the creation of a higher low. The MACD has given a bullish reversal signal and the RSI is increasing. However, it has not yet crossed above 50.
While BTC has bounced at the 0.5 Fib retracement level, it hasn’t been strong.
The next support area is created by the 0.618 Fib retracement level, found at $53,416.
A breakout from the descending resistance line is required for the trend to be considered bullish. This would also likely cause the MACD and RSI to move above 0 and 50 respectively.
Conclusion
Bitcoin is likely to create a higher low at one of the Fib support levels outlined above.
Afterwards, an upward movement towards the descending resistance line is expected.
For BeInCrypto’s previous bitcoin (BTC) analysis, click here.
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