Bitcoin price tag was trying a recovery all around the final week of 2021. However, the coin was hardly ever in a position to break over the $53100 resistance, exactly where extreme offering strain drove the price tag back in the direction of the $46100 mark. As the coin is trying to sustain over $46100, the bullish divergence in the RSI chart suggests a far better chance for a bullish reversal.
Main technical factors:
- BTC price tag is dealing with robust resistance from the 50-day EMA
- Daily RSI chart displays clear bullish divergence
- Bitcoin intraday trading volume is $23 billion, exhibiting a reduction of 15.34%.
The supply- Tradingview
The final time we stated an write-up about BTC/USD, the coin price tag broke out of a bearish parallel channel pattern on the four-hour timeframe. Even if the price tag finished this bullish pattern, the pair could only attain the $53100 resistance degree.
The price tag struggled at this overhead resistance for a number of days and soon after the 50 EMA entered the resistance location, this confluence triggered a bearish reversal and drop to the $46000 assistance.
This little pullback has as soon as yet again dropped the price tag beneath the 200 EMA, indicating a bearish bias for the coin. Furthermore, the 50 EMA has verified to be a legitimate resistance degree for the price tag.
The everyday Relative Strength Index (41) displays a bullish divergence in its chart, indicating a increasing bullish trend.
BTC Coin Could Form a Double Bottom
If BTC price tag commences to rise yet again, the coin will quickly retest the $53100 resistance and also from a double bottom in the everyday chart. The neckline of this pattern is the very same overhead resistance, which is the to start with obstacle to a rally.
On the contract note, if the price tag rejects the $53100 resistance, the coin will present a assortment of consolidation in the four-hour timeframe chart.
The moving common convergence divergence indicator displays that the MACD and the signal lines are approaching the neutral zone (.00). A breakout of the overhead resistance and a break over this moving common will give even more confirmation to the purchasers.