- BTC/USD is inclined to trend sideways and even break below the weak support at the 38.2% Fibo.
- Bitcoin has a strong bullish bias while all the signals from technical indicators are positive.
Bitcoin price continues to correct higher within the confines of an ascending channel. The channel started to form after BTC/USD found support last week at $4,900 (swing low). The upside correction, although subtle shows that Bitcoin has a bullish outlook in the near-term. The bulls must, however, the battle to send BTC past the channel resistance and establish support above the 50% Fibonacci retracement level between $5,483.36 and a previous swing low of $4,907.02 marginally below $5,200.
Bullish short-term outlook: 1-hour chart
The 50 simple moving average (SMA) recently crossed above the 100 SMA to show that the price is gaining traction in the short-term. Besides the price is trading above the moving averages with the 50 SMA positioned to offer support at $5,100 and the 100 SMA currently at $5,082.78.
Considering other indicators in the same range like the relative strength index (RSI), BTC/USD is inclined to trend sideways and even break below the weak support at the 38.2% Fib retracement level. Following the RSI rejection from the overbought, the indicator currently at 53.23 has been correcting lower.
On other hands, the MACD has not been able to correct past +30.00 despite the bullish momentum witnessed over the weekend’s trading session. Similarly, a bearish correction is aiming for the negative zone at press time. This means that BTC/USD upside will stay limited below $5,200 and could give way to sideways trading.
In the weekly timeframe, Bitcoin has a strong bullish bias. All the signals from technical indicators are positive. The RSI horizontal at 57.16 has come a long way since the levels shown in November and December 2018. Although the MACD is still in the negative region, it is in an upwards trajectory and could soon cross into the positive region. Besides, the price recently broke above the 21 exponential moving average (EMA).
Bitcoin Key Technical Indicators:
50 SMA 1-hour: $5,100
100 SMA 1-hour: $5,082.78
RSI 1-hour: 53.23
EMA weekly: $4,454.74
RSI weekly: 57.16
Support 1: $5,100
Support 2: $5,000
Resistance 1: $5,200
Resistance 2: $5,483.36
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John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige