Bitcoin Price Forecast: BTC New Bullish Setup Targets $36,000, Here Are The Levels To Watch
Bitcoin price has been underwater for most of this week. However, as the Asian session nears the tail end on Friday, a bullish outlook seems to emerge. This follows formidable support confirmed at $31,000, which allowed more retail investors to anticipate Bitcoin rallying to $36,000.
Can Bitcoin Price Uphold An Uptrend
Generally, Bitcoin is trading within a descending parallel pattern, as observed on the 12-hour chart. In other words, the overall direction of the price is downward.
However, recoil is in progress from the support at $36,000, reinforced by the channel’s lower boundary. If this recovery is sustained, BTC would have the power to break the elongated losing streak and make haste to $36,000.
The Relative Strength Index (RSI) shines a light on the bullish camp getting more aggressive. This technical tool tracks Bitcoin’s trend and calculates its strength. A sharp rise from levels close to the oversold region shows that the bulls’ grip is tighter, and Bitcoin can approach higher levels.
BTC/USD four-hour chart
On the upside, a break above the descending channel’s middle boundary will help validate the recovery. In the short term, a four-hour close above $32,000 may trigger more buy orders as investors are attracted to the market with the hope of seeing Bitcoin prices rocketing to $36,000 and $40,000, respectively.
Looking at the other side of the picture
It is worth mentioning that a death cross pattern recently occurred on the four-hour chart when the 50 Simple Moving Average (SMA) crossed below the 100 SMA.
Although recovery is underway, the impact of this bearish formation could still pull Bitcoin price down. Note that failure to close the day above the channel’s middle boundary could invalidate the uptrend, as Bitcoin is destabilized toward $30,000.Source