Bitcoin (BTC) is trading above a crucial Fib support level and has generated several bullish signs.
BTC declined significantly during the week of December 27 to January 2, falling to a low of $ 45,678 in the process. However, it bounced back afterwards and managed to close at $ 47,286. This was crucial as the previous bullish engulfing candlestick was not invalidated.
Currently, BTC is trading just above the 0.618 Fib retracement support level located at $ 44,300.
However, technical indicators paint a neutral picture.
The RSI, which is an indicator of momentum, can be found right at line 50 (red circle). This is the sign of a neutral trend. A decisive move above or below this line is needed for the trend direction to become clear.
Likewise, the MACD, which is created by both short and long term moving averages (MA), is falling but remains positive.
BTC’s daily chart provides a much more bullish outlook. The main reason for this is the multiple bullish divergences present in both the RSI and the MACD.
The main resistance zone can be found at $ 52,400, but there is also a higher resistance level at $ 58,750. This is both a horizontal resistance area and the 0.618 Fib retracement resistance level.
When it comes to indicator readings, the divergence of the MACD line is especially crucial. The two previous times this has happened, an important movement has followed.
Compared to the current reading, the previous divergences were more pronounced. Therefore, it is possible that BTC will continue to develop the divergence before possibly starting a strong bullish move.
Short term BTC movement
Similar to the daily schedule, there are bullish divergences in the MACD and the two hour RSI. This is a sign that an upward movement towards the resistance levels described above is likely.
For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.
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