Bitcoin Price Analysis: BTC Coin Escaping Falling Channel Triggers Bullish Reversal

Bitcoin Price Analysis: BTC Coin Escaping Falling Channel Triggers Bullish Reversal

The BTC coin trapped in a correction phase has lost 30% of its value. Moreover, the bears were tryign to extend this pullback after taking down 200 EMA. but they couldn’t follow up the breaddown. As for now, a bullish breakout from price pattern and RSI divergence suggests a recovery chance for bitcoin.

Key technical points:

  • The BTC coin chart showed a bullish crossover of the 20-and-200 day EMA
  • The daily RSI chart shows an evident bullish divergence
  • The intraday trading volume in the BTC coin is $26.9 Billion, indicating a 3.13% loss.
  • The last time when we covered an article on BTC/USD, the coin price breached the crucial support of 0.5 Fibonacci retracement level and 200 EMA. Later the price retraced back, trying to identify sufficient resistance before a significant downfall

    However, even after multiple retests the bears still couldn’t drop the price to a larger extent as the price still managed to sustain above the $45000 psychological level. Moreover, the technical chart displayed the price was fluctuating in a falling parallel channel pattern.

    The crucial EMA levels(20, 50, 100, and 200), indicating a bearish trend for the coin. Moreover, the pair also shows a bearish crossover between the 20 and 200 EMA.

    The daily Relative Strength Index (44) displays strong bullish divergence in its chart, indicating the growing strength of coin buyers.

    BTC/USD 4-hour time frame chart

    For more than two weeks, the BTC coin price resonated in a falling parallel channel pattern. However, today the price gave a bullish breakout from this pattern, providing an excellent long opportunity for long traders.

    On a contrary note, the safe traders can still wait for the price to breach and sustain above the daily 200 EMA line, providing an extra edge in their trading.

    The 4-hour traditional pivot shows remarkable confluence with the chart’s SR level. According to these pivot levels, the crypto traders can expect the nearest resistance at $49450 followed by $52200. As for the opposite end, the support levels are $47460 and $44700.

    Source

    Subscribe to get our top stories