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Bitcoin (BTC) is trading above an important Fib support level, while giving several bullish signals.
Bitcoin sagged significantly for the week from December 27 to January 2, marking a local minimum at $ 45,678. However, BTC was able to rebound and close at $ 47,286. This was a very significant moment, since the price managed to avoid neutralizing the previous bullish engulfing candlestick.
At the time of writing, the BTC rate is trading above the 0.618 Fib level of correction at $ 44,300.
However, technical indicators paint a neutral picture.
The momentum RSI indicator sits directly around the 50 mark (red circle), indicating a neutral trend. In order to clarify the further direction of the trend, the index needs to make a convincing leap up or down from this level.
Likewise, the MACD indicator is declining, but still remains in the green zone.
Source: TradingView
Bullish divergence
On the daily chart, BTC is showing a much more bullish sentiment thanks to numerous bullish divergence signals on the RSI and MACD.
The main resistance area is located at $ 52,400. Stronger resistance is also found at $ 58,750. It is represented by the horizontal area and the 0.618 Fibo retracement level.
A source: TradingView
As for technical indicators, MACD divergence seems to be especially significant here. When the MACD line gave similar signals the previous two times, it served as a harbinger of a large-scale price move.
Compared to current indicators, previous divergence signals were more pronounced. In this regard, it is possible that Bitcoin will continue to develop this divergence and only then will it launch a phase of active growth.
A source: TradingView
Short-term dynamics BTC
As on the daily chart, on the 2-hour timeframe, you can see developing bullish divergence signals for the RSI and MACD. This promises the market the likelihood of growth in the direction of the resistance levels we have highlighted above.
Source: TradingView
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