Bitcoin (BTC) is down slightly after hitting a local high of $ 52,000 on December 27th. However, its bullish structure remains intact.
On December 23rd, BTC broke a descending resistance line that had formed since the all-time high on November 10th.
This indicates that the correction is finished. After that, BTC continued to rise until it hit as high as $ 52,000 on December 17.
However, it has fallen since then and may return to confirm the resistance line for support. That line is currently near $ 48,000.
Technical indicators give mixed signals. The RSI, a momentum indicator, has been rejected by the 50 line (red symbol). Movements above and below this line are generally considered bullish.
Therefore, a bullish trend reversal has yet to be confirmed.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows that BTC has been trading in a rising parallel channel since the low in December.
On December 27th, it was rejected by the channel’s centerline, which coincides with the USD 51,600 resistance area (red symbol). This started the current short-term downtrend.
Despite the decline, BTC is still trading within the channel, which support line was found at USD 48,000. As long as it stays in the channel, the bullish structure remains intact.
BTC / USDT 6-hour chart | Source: TradingView
There is support between $ 48,000 and $ 48,750 on the hourly chart. Support is provided by the 0.5-0.618 fib retracement support area when measuring the most recent part of an uptrend.
In addition, it is also a horizontal support surface. In addition, it coincides with the support line of the ascending parallel channel sketched above.
Therefore, if the uptrend continues, BTC is expected to make a higher low within this zone.
Hourly BTC / USDT Chart | Source: TradingView
You can see the BTC price here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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