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Bitcoin (BTC) was unable to recover above the line that previously played a support role. Short-term horizontal support ranges between $ 47,000 and $ 48,150.
Bitcoin reached a high of $ 51,936 on December 7, but then pulled back from it. During the formation of this high, BTC tested the former upward support line (red icon) for strength as resistance. This line also coincides with the resistance area of $ 52,500 (Fibo level of 0.382 retracement), which increases the significance of this area.
After a rebound from this level, the price goes down. Technical indicators are also giving bearish signals.
Thus, MACD is in the red zone and declines, showing that the short-term MA is slowing down relative to the long-term MA. The indicator tried to form a rising momentum bar, however, these attempts may be canceled by the close of day trading.
The RSI, which is a momentum indicator, has dipped below 50 and is declining, which is also a sign of a bearish trend.
Thus, the picture on the daily chart is bearish.
Source: TradingView
Current channel
On the 6-hour chart, BTC has been trading within a descending parallel channel since November 10, when the market hit its all-time high around $ 69,000.
At the time of writing, Bitcoin is trying to recover above this channel’s median line and turn it into support (red circle).
Both MACD and RSI are growing on this timeframe, although the first indicator has not yet entered the green zone, and the second is below 50.
It is noteworthy that the resistance line of this channel also coincides with the previously highlighted resistance area of $ 52,500. Thus, the correction cannot be considered complete until the BTC rate breaks above this area.
A source: TradingView
Short-term dynamics BTC
If the rebound continues, the market will receive short-term support in the area between $ 47,000 and $ 48,150. This is the horizontal support formed by the 0.382-0.5 Fibo retracement levels.
Thus, BTC could form a rising low and start a bullish rebound.
Source: TradingView
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