- Bitcoin bounces off short-term support at $47,000 as bulls nurture the uptrend to $52,000.
- Bulls must defend the support at the 50 SMA on the 4-hour chart to avoid retreats toward $42,000.
Bitcoin embraced support at $47,000 on Tuesday following the rejection at $50,000. Losses toward $42,000 had become apparent, especially after the 50 Simple Moving Average (SMA) support had been shattered. In the meantime, the flagship cryptocurrency has bounced off the short-term support and is setting the pace toward $50,000.
The key short analysis takeaways for Bitcoin is its trading within the confines of a descending parallel channel. Towards the end of February, the channel’s lower boundary assisted in keeping bears in check, the most recent bounce being at $42,800.
Bitcoin has reclaimed the position momentarily lost above the 50 SMA and is dancing slightly above $48,650. Buyers are looking forward to two crucial moves; breaking above the channel’s upper boundary and settling above the 100 SMA. This will get the pioneer cryptocurrency out of the woods and place it on the trajectory toward $52,000.
BTC/USD 4-hour chart
The bullish narrative has been validated by the Moving Average Convergence Divergence (MACD) on the 4-hour chart. The indicator follows BTC’s trend and measures its momentum. Traders can also use it to identify positions to sell the top or buy the bottom.
For now, Bitcoin is still in the hands of the bull, primarily with the indicator resting above the midline. Besides, the MACD line (blue) is holding above the signal line, adding credence to the bullish picture.
It is worth keeping in mind that Bitcoin’s uptrend can fail to continue if the channel’s resistance remains unshaken. Moreover, if the support at the 50 SMA fails to hold again, losses toward $42,000 will start to build pressure. Note that the 200 SMA at $45,000 is in line to provide anchorage,
Bitcoin intraday levels
Spot rate: $48,650
Relative change: 168
Percentage change: 0.4%