Following the correction move, it seems ended. The strong $4200 lies the battle. Once broken, a bullish trend is signaled. Watch out!
Resistance levels: $4300, $5600, $6500
Support levels: $3200, $2800, $2500,
BTC/USD Long-term Trend: Bearish (1D Chart)
From the structural appearance: Bitcoin is yet to signal the much-anticipated bull-run. At the 2018 low ($3100), the green bars shoots to $4200. Since then, the price has been flagging to the trend line; the daily MACD just swing low to the negative.
Yesterday, the price shoots to $3800 after sitting at $3500 on the trend line. This could be a bullish signal. But until $4200 strong resistance is broken before another uptrend could be confirmed which might last to $5600 resistance. As of now, the bearish scenario is still dominant.
Today, the price is leaving the oversold area on the Stochastic RSI; showing buying pressure. The buyers aim the next resistance. If they fail, sellers’ rejection might take BTC to retest $3200 support.
BTC/USD Medium-term Trend: Bearish (4H Chart)
On the 4 hours graph, this pair is moving in a descending channel. The correction began after testing the resistance level 1 in Dec. 2018. The question many asked is: when will it end? Well, the simple answer is; the market dance to the impact of news and high trading volume side. Be it bear or bull.
Back to chart, the Stochastic RSI indicates a potential sell, ready to leave the overbought territory. The sellers’ major target lies at $3200 support.
As shown on the MACD, an incline move is compounding. Crossing to the positive zone would position Bitcoin to the peak of $4200 resistance, at the top trend line. Otherwise, the decline remains. However, price action will continue to respects the falling channel until a break occurs at both trend lines.