Bitcoin approached $30,000 again after failing to confirm last week’s break above $40,000. The weekend session has been another bloodbath in the cryptocurrency market, sparking questions of how far the correction will go and if recovery is at all possible.
The flagship cryptocurrency plunged back to $30500 but sustained the position within the relatively sharp descending parallel channel. Its lower boundary has continued to play a key role in keeping the bears in check. However, the channel’s upper edge limits recovery action.
At the time of writing, BTC trades marginally above $35,000 amid a seemingly strong bullish swing toward $40,000. It is a priority for the bulls to make a real break above $35,000. This will shift the focus toward $40,000, which will likely trigger massive buy orders for the ultimate upswing to $50,000.
Bitcoin back to the drawing board
The four-hour chart brings to light the gradually improving technical picture. The narrative has been highlighted by the Relative Strength Index RSI), following a bounce from the oversold region. A confirmed movement above the midline would emphasize a solid bullish grip as the price lifts to $40,000.
According to the Moving Average Convergence Divergence (MACD), the bullish outlook is about to get stronger. This asset’s momentum indicator is slowly closing the gap heading to the mean line. Moreover, the MACD line could soon cross above the signal line, adding credibility to the uptrend.
BTC/USD four-hour chart
Bitcoin is dancing in the upper column of the descending channel. The middle boundary is crucial support must be defended to ascertain the developing uptrend.
Otherwise, Bitcoin is not out of the woods because investors could continue selling for profit at the slightest hint of market instability. Note that the support at $30,500 is also vital because if lost, Bitcoin may freefall toward $20,000.
Bitcoin intraday levels
Spot rate: $35,300
Resistance: $39,000 and $43,000.
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