- In the short-term, Bitcoin has turned bullish after performing a breakout from a descending wedge pattern
- The Medium-term outlook remains bearish until the $5,200 level is breached
- Daily time frame shows the $4,400 to $4,600 area as major upcoming technical resistance
BTC / USD Short-term price analysis
Bitcoin is bullish in the short-term after the number one cryptocurrency finally broke above a well-defined descending price channel on the four-hour time frame following an extended period of price consolidation in the BTC / USD pair.
A near-term advance above the $4,000 level would likely prompt a technical test of the important $4,300 and $4,400 resistance areas.
If bulls fail to move price convincingly above the $4,000 level, we may see sellers pushing the BTC / USD pair back towards the price channel around the $3,600 level.
BTC / USD H4 Chart (Source: TradingView)
Pattern Watch
A bullish inverted head and shoulders pattern can be seen on the four-hour time frame with an upside projection of around $1,200.
MACD Indicator
The MACD indicator on the mentioned time frame is trading higher with a bullish signal line crossover underway.
RSI Indicator
The Relative Strength Index indicator is bullish, although the recent move higher has put the indicator into overbought territory.
BTC / USD Medium-term price analysis
Bitcoin remains bearish over the medium-term, despite the advance in the number one cryptocurrency and the recent broader cryptocurrency market rally. Buyers will need to move price above the pair’s 200-day moving average to shift the BTC / USD pair’s bearish medium-term outlook.
The $4,600 level represents an area of strong technical resistance for Bitcoin, with the pair’s 100-day moving average converging with major trendline resistance on the daily time frame.
Overall, upside pressure should persist while the BTC / USD pair trades above the $3,600 level.
BTC / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should watch for a breakout from the large wedge pattern seen across the daily time frame.
MACD Indicator
The MACD indicator has now turned bullish on the daily time frame and is signaling further upside.
RSI Indicator
The Relative Strength Index is bullish and is now at its highest level since the summer of 2018.
Conclusion
Bitcoin has turned bullish in the short-term, with the BTC / USD pair likely to sustain upside momentum while trading above the $3,600 level.
The daily time frame also shows that a break above the $4,600 resistance level would trigger substantial technical buying in the BTC / USD pair, which could lead to an eventual test of the pair’s trend-defining 200-day moving average.
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Bitcoin
(BTC) - Price
$3,938.43 - Market Cap
$69,107,707,760.42
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