Bitcoin (BTC) has likely bottomed out and this will be confirmed on a breakout over the next short-term resistance.
BTC fell significantly for the week of November 22-28, resulting in a low of $ 53,256 on November 28th. However, the price rebounded later in the day and helped BTC close the weekly candle just over $ 57,000. This movement led to the formation of a long lower wick, which is seen as a sign of buying pressure.
Despite the rebound, there is still significant weakness on the weekly timeframe.
First, BTC has dropped below the $ 59,000 region. This area previously acted as resistance at the all-time highs of April to May and is expected to act as support.
Second, both the RSI and the MACD create bearish divergence (green line). This is a bearish trend and often leads to a trend reversal. Especially when it happens in the long term time frame like the weekly frame. However, the divergence of the RSI is not obvious, which diminishes its importance somewhat.
BTC / USDT weekly chart | Source: TradingView
The daily chart offers a more bullish outlook.
BTC created a bullish candle after bouncing off the USD 53,250 support area. This is the horizontal support and the 0.5 fib retracement support.
In addition, the technical indicators are showing signs of reversal.
The MACD, which is made up of short and long-term moving averages (MAs), is in the process of gradually creating higher momentum bars. This is an indication that the short-term MA is starting to move faster than the long-term MA, which often happens when prices reverse their uptrend.
The RSI, a momentum indicator, is also close to moving above 50. The 50 line is often viewed as the benchmark for an upward and downward trend.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows that BTC has been following a descending resistance line since hitting an all-time high on November 10th.
This line currently coincides with the $ 59,350 resistance area, which corresponds to the 0.382 fib retracement resistance.
A break above this line will cause the indicators described above to confirm the reversal. Therefore, it is confirmed that the adjustment is completed.
BTC / USDT 6-hour chart | Source: TradingView
You can see the BTC price Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto