Bitcoin Price Analysis: BTC Now Retesting Critical Resistance, Is $50K Incoming?

Forum 2 years ago

Bitcoin Price Analysis: BTC Now Retesting Critical Resistance, Is $50K Incoming?

Another week – another impressive BTC rally. The cryptocurrency has pushed higher in the past week, at one point making an intraweek high above major resistance at the 21-week moving average and the 200-day moving average. BTC saw some selling pressure heading into the weekly close and went slightly below these 2 critical levels.

Near-term technicals on the 4-hour chart signal caution as there is bearish divergence forming. This occurs when the price is trending higher while the relative strength index is trending lower, indicating a near-term risk of consolidation or pullback.

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Chart by TradingView

To invalidate the bearish divergence, BTC needs to break above the recent highs at $45.3k and continue pushing significantly higher to allow the relative strength index to go above the downtrend line.

At the time of writing, BTC is attempting to invalidate bearish divergence. This could be an earlier than expected start of another try to break above the 21-week moving average and the 200-day moving average. A successful daily and weekly close above these 2 critical levels will trigger a very strong buy signal, likely opening a new wave of capital into the largest cryptocurrency, pushing prices significantly higher, and perhaps even targeting the coveted $50K mark.

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Chart by TradingView

Earlier today, BTC had a bullish backtest of a rising trend line, previously resistance, now flipping as support. Technical analysts consider this another near-term bullish signal for BTC. With bullish fundamentals, technicals, momentum, sentiment, on-chain signals, the hash ribbon indicator flashing a long-term buy signal, and illiquid supply increasing, the conditions look favorable for a BTC breakout.

The week just started, so we will have to see how BTC holds today and going forward.