BTC Creates Higher Low and Attempts to Begin Bullish Reversal

The bitcoin (BTC) price has been decreasing at an accelerated rate since April 18.

Despite the drop, BTC has created a short-term higher low. A breakout from the current descending resistance line would confirm the bullish trend reversal.

Ongoing BTC bounce

On April 18, BTC reached a low of $50,931. However, it immediately bounced, creating a very long lower wick. 

Since then, it has been trading near the $55,000 level.

Despite the bounce, technical indicators in the daily time-frame are bearish. The MACD has crossed into negative territory. The RSI is trading below 50. Furthermore, the Stochastic oscillator has just made a bearish cross.  

Nevertheless, the bounce has been very significant. In addition, the price is also trading above the support line of a potential ascending parallel channel. This indicates that the current movement could be a big running flat correction. 

As a result, we can consider the trend bullish as long as the price is above the $51,000 area and especially the support line of the channel. 

BTC Channel
Chart By TradingView

Short-term BTC movement

The shorter-term six-hour chart shows that BTC is also following a descending resistance line. The line currently coincides with the 0.5 Fib resistance at $57,960. 

Technical indicators are already turning bullish, supporting a reversal. The MACD has given a bullish reversal signal and the RSI is increasing. 

This indicates that the price is likely to head towards the resistance line and potentially break out.

BTC Descending Resistance Line
Chart By TradingView

The two-hour chart is in alignment with the six-hour one. 

The price has already created a higher low at the 0.618 Fib retracement support. 

A breakout from the very short-term descending resistance line (white) would confirm that BTC is heading towards the longer-term resistance.

BTC Short-Term Movement
Chart By TradingView

To conclude, BTC is attempting to regain its footing after the significant drop. A breakout from the current descending resistance line would confirm this.

For BeInCrypto’s previous bitcoin (BTC) analysis, click here.