The Bitcoin price was trying to recover around the last week of 2021. However, the coin could never pass the $53100 resistance, where the strong selling pressure dropped the price back to the $46100 mark. As the coin is trying to sustain above $46100, the bullish divergence in the RSI chart proposes a better possibility for a bullish reversal.
Key technical points:
- The BTC coin price is facing strong resistance from the 50-day EMA
- The daily RSI chart shows an evident bullish divergence
- The intraday trading volume in Bitcoin is $23 Billion, indicating a 15.34% loss.
The last time when we covered an article on BTC/USD, the coin price broke out from a falling parallel channel pattern of the 4-hour time frame. Even though the price completed this bullish pattern, the pair could only reach the $53100 resistance level.
The price struggled at this overhead resistance for a few days, and after 50 EMA joined as resistance, this confluence triggered a bearish reversal and plunged to the $46000 support.
This minor pullback has again dropped the price below the 200 EMA line, indicating a bearish trend for this coin. Moreover, the 50 EMA line has proven to be a valid resistance level for the price.
The daily Relative Strength Index (41) displays bullish divergence in its chart, indicating the increasing bullishness in the price.
BTC Coin Could Form A Double Bottom Pattern
If the BTC price starts rallying again, the coin would soon retest the $53100 resistance and also from a double bottom pattern in the daily chart. The neckline for this pattern is the same overhead resistance, which is the first obstacle for a recovery rally.
On a contract note, if the price rejects from the $53100 resistance, the coin will display a consolidating range in the 4-hour time frame chart.
The Moving average convergence divergence indicator shows the MACD and signal lines are approaching the neutral zone(0.00). A breakout from this above resistance and surpassing this middle level will provide more confirmation for the buyers.
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