After hitting a local high of around $82,800, BTC price suffered a 4.25% decline, lost the key horizontal support level of $80,600, and retreated to the top of a bear flag which was a strong enough support to stop the rot. As Bitcoin continues to bounce, could $85,000 be the next higher target?
Short-term momentum indicators indicating a rebound?
Although the recent pullback may have made many investors nervous, especially after breaking beyond critical resistance, it can likely be attributed to a healthy rebound, especially given that the price Bitcoin price in dollars It has become completely overbought.
The price fell below the crucial horizontal support level of $80,600, making it resistance again The price fell from the small ascending channel. However, the upper trend line of the bear flag was strong enough to keep the price higher. There has been a rebound since then, and now All short-term momentum indicators have resetthe bulls are hoping for a push higher.
Will the price be rejected from the 200 day simple moving average?
source: TradingView
The daily chart shows us that Bitcoin price in dollars He is in a very sensitive stage. The bulls are hoping that the bear flag support will hold and that they can push the price back above the key resistance level.
Now very close to the price Bearish 200-day simple moving average (SMA). The bears will be looking for a major rejection of this all-important average which will bring the price back to the bear flag level and send it to the bottom.
At the bottom of the chart is the Relative Strength Index (RSI). This illustrates another very important battle between bulls and bears. The bearish trend line has kept the indicator line down for about 20 months now, with several tests of the trend line taking place during that period. For the first time The indicator line may be about to risebreak the trend line. Expect some fireworks if you succeed.
The last 3 crucial days of the week
source: TradingView
While there is still the rest of Friday and the weekend, The bulls will need to be wary of the weekly candle closing below the $80,000 resistance leveland also below the upper trend line of the bear flag. In fact, this could be disastrous.
Under current conditions, this seems a possibility, although as momentum indicators reset in the short term, the odds may still favor the bulls.
Another factor to watch is the Stochastic indicators on this weekly time frame. They have reached the top, but as we saw the last time they were here, they have been able to bounce back and keep the rally going.
This week’s close will be very interesting. Unless the bulls push the price higher, with some good news from the conflict in the Middle East, things could suddenly turn bearish again.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
