Bitcoin (BTC) despite showing bearish signs against tether (USDT) as the price plunged to $18,500 recently, with many traders and investors sweating on their long open position.
The price of Bitcoin (BTC) quickly bounced off from that region after forming a bullish divergence on the four-hour chart and has shown no intention of stopping. (Data from Binance)
Bitcoin (BTC) Price Analysis On The Weekly Chart
The price of BTC has had a tough time maintaining the bullish momentum it has shown in recent weeks as the price was rejected from the $25,200 area acting supply zone for most sellers.
BTC has struggled to trend higher after it saw its price drop from a rising wedge as this triggered most sell orders, leaving BTC’s price to retest its previous all-time high, leaving many worried as the price could go lower to $10,000.
The price of BTC could face another scenario, but in this case, its trends are higher ahead of the weekly close. Haven bounced off pretty well from the last weekly low, and claiming the support at $20,700, BTC could be ready for a major run to $24,000-$25,000 if the weekly candle closes above $21,700.
BTC’s price looks bullish ahead of the weekly close and could trend even higher as the market looks promising ahead of the new week.
BTC has continued to respect the downtrend line acting as resistance for BTC price on the weekly timeframe; if BTC breaks above this trendline, we could see more bullish sentiments.
Weekly resistance for the price of BTC – $24,000.
Weekly support for the price of BTC – $20,700.
Price Analysis Of BTC On The Daily (1D) Chart
The daily timeframe for BTC price looks bullish, with prices looking to close the day and week on a high. The price of BTC bounced off from a daily low of $19,000, and the price rallied to $21,600, where it is faced with resistance to breaking above this region.
The price of BTC needs to break above $21,600 and close above it to have a good opportunity of rallying to the expected $24,000. If the price of BTC fails to break this region, we could see the price retesting the region of $20,700, which has been an area of good support for the daily timeframe.
On the daily timeframe, the price of BTC is trading at $21,500, attempting to break and hold above the 50 Exponential Moving Average (EMA). The price of $21,600 corresponds to the 50 EMA, which is a resistance to the price of BTC.
With BTC looking to break its major resistance on the daily timeframe, this corresponds to the 23.6% Fibonacci retracement value of $22,000. The price of BTC holding above this region would lead to more bullish sentiments.
The Relative Strength Index (RSI) for BTC is above 50 on the daily chart, indicating high buy order volume.
Daily resistance for the BTC price – $21,600.
Daily support for the BTC price – $20,700.
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