Bitcoin price analysis: BTC recovery stalls on approach to $5,500
|- BTC/USD managed to mar its way above $5,400.
- A strong growth above $5,5000 is needed for an extended recovery.
BItcoin (BTC) broke above $5,400 resistance and made its way towards the intraday high of $5,478, However, the recovery has stalled on approach to $5,500 resistance area strengthened by the upper boundary of a daily Bollinger Band.
BTC/USD has been growing steadily for the fourth day in a row, though it is still below April’s high $5,632. The coin has gained over 3% since this time on Thursday and 0ver 5% in recent seven days.
Looking technically, a sustainable move back inside the upside channel has improved the technical picture. The channel support (currently at $5,346) now serves as a strong barrier for Bitcoin bears that is likely to stop the short-term sell-off attempts.
However, once it is cleared, the downside momentum is likely to gain traction with the next focus on $5,250. This support area is created by a combination of SMA50 (4-hour chart) and the middle line of Bollinger Band (daily chart).
On the upside, we need to see a strong move above $5,500 handle to bring the recent high of $5,632 back into focus. The next resistance is located on approach to $5,900.
BTC/USD, 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.