After the massive drop in Bitcoin prices which occurred last week and over the weekend, Bitcoin has recovered some of its losses. Yesterday’s price action was particularly intriguing because the price challenged the 200-day SMA on the daily time frame. The hope among Bitcoin bull was that the price will be able to move above the 200-day SMA. However, Bitcoin has failed in breaking above the 200-day SMA and this is the first sign of weakness in the price action. The bitcoin’s price is already trading below the 100 and 50-day SMA which further confirms that the bulls are no longer in control of the price and it is bears who are controlling the narrative.

BTC bulls have also been watching the 4 hour time frame very closely and hoping that the Bitcoin price will stay above the 50-day SMA. Unfortunately, there aren’t much signs of strength there as well and if the BTC price fails to win its war against the 50-day SMA and doesn’t stay above the 50-day SMA, then we are likely to see more weakness.

The RSI is trending up for the past few days on the daily time frame and it has formed a higher high and higher low which is a sign of confidence for Bitcoin bulls.

The bottom line is that if the Bitcoin price is going to move higher, it needs to stay above the 50-day SMA on the 4-hour time frame and it also needs to stay above the 200-day SMA on the daily time frame.

Chart

 


The information is purely for education purposes only and cannot be perceived as an advise.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP