2022-12-9 17:30 |
The Bitcoin (BTC) price shows bullish reversal signs in both the weekly and daily time frames. However, a decisive movement above $19,000 is required to confirm the bullish trend reversal.
Bitcoin is a highly volatile digital currency created by Satoshi Nakamoto. The smallest units are called satoshis and are worth 0.00000001 BTC. A maximum of 21 million coins will ever be in existence.
The Bitcoin price has been in a bear market since reaching an all-time high of $69,000 in Nov. 2021. The BTC price fell to a low of $15,476 in Nov. 2022. A similar decrease was seen throughout the rest of the crypto market.
The price action since the low has been relatively bullish. The Bitcoin price bounced and possibly validated a long-term ascending support line (green icon), which has been in place since March 2020. The line is currently at an average price of $16,000. A breakdown from it would not bode well for the future price since it could further accelerate the rate of decrease.
However, technical indicators are bullish. The weekly RSI has generated the most significant bullish divergence in history (green line) and moved outside its oversold territory.
For the Bitcoin price trend to be considered bullish, the price has to reclaim the $19,000 area. This is a crucial horizontal level since it acted as the all-time high in 2017 and then turned to support in May 2022.
A movement above the level would render the current breakdown only a deviation. Additionally, it would cause the weekly RSI to break out from its bearish divergence trend line (black), confirming that a bullish reversal has begun.
BTC/USDT Weekly Chart. Source: TradingView Can Bitcoin Price Kick-start Bullish Reversal?The Bitcoin technical analysis from the daily time frame reiterates the importance of the $19,000 resistance area. The area initiated numerous bounces (green icon) in June – Oct, before the BTC price broke down in Nov. Moreover, it coincides with a descending resistance line.
Similar to the weekly one, the daily RSI is bullish. It generated bullish divergence between Nov. 1 – 14 and is now at the 50 line. Reclaiming this line would be a significant bullish development.
The price action also shows bullish signs since the Bitcoin price created a bullish engulfing candlestick (green circle) during the past 24 hours.
In any case, a breakout above the $19,000 resistance area and the descending resistance line is required for the Bitcoin price forecast to be bullish.
BTC/USD Daily Chart. Source: TradingViewFor BeInCrypto’s latest crypto market analysis, click here.
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