Exclusive BTC Creates Higher Low and Attempts to Begin Bullish Reversal

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In Brief
  • BTC has bounced at the $51,000 support area.

  • It is possibly trading inside a long-term parallel ascending channel.

  • BTC is following a short-term descending resistance line.

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The bitcoin (BTC) price has been decreasing at an accelerated rate since April 18.

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Despite the drop, BTC has created a short-term higher low. A breakout from the current descending resistance line would confirm the bullish trend reversal.

Ongoing BTC bounce

On April 18, BTC reached a low of $50,931. However, it immediately bounced, creating a very long lower wick. 

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Since then, it has been trading near the $55,000 level.

Despite the bounce, technical indicators in the daily time-frame are bearish. The MACD has crossed into negative territory. The RSI is trading below 50. Furthermore, the Stochastic oscillator has just made a bearish cross.  

Nevertheless, the bounce has been very significant. In addition, the price is also trading above the support line of a potential ascending parallel channel. This indicates that the current movement could be a big running flat correction. 

As a result, we can consider the trend bullish as long as the price is above the $51,000 area and especially the support line of the channel. 

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Short-term BTC movement

The shorter-term six-hour chart shows that BTC is also following a descending resistance line. The line currently coincides with the 0.5 Fib resistance at $57,960. 

Technical indicators are already turning bullish, supporting a reversal. The MACD has given a bullish reversal signal and the RSI is increasing. 

This indicates that the price is likely to head towards the resistance line and potentially break out.

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The two-hour chart is in alignment with the six-hour one. 

The price has already created a higher low at the 0.618 Fib retracement support. 

A breakout from the very short-term descending resistance line (white) would confirm that BTC is heading towards the longer-term resistance.

Chart By TradingView

To conclude, BTC is attempting to regain its footing after the significant drop. A breakout from the current descending resistance line would confirm this.

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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