The crypto bear market will soon celebrate its one year anniversary. A dark period for bitcoin (BTC) since, since then, it has lost more than 70% of its value. This bearish period is not over yet. Indeed, BTC remains trapped inside the $18,000-$25,000 range for four months. However, it looks like a bullish correction is imminent for bitcoin (BTC), according to this indicator.
Bitcoin (BTC): a correction towards $24,000?
On a D1 chart, the 100 moving average appears to serve as a major resistance for the price. On the other side, the support around $18,000 plays its role of “support” well. Indeed, this level prevented the price from creating a new low lower than the one on June 18th.
Alongside this, one can also see a “bullish divergence” between the price and the RSI oscillator. Which effectively indicates a potential bullish correction on bitcoin, from this level. Because of this, it is highly likely that this crypto will test the months-old downtrend line. But not only that, the two moving averages 100 and 200 will also serve as potential resistance for the price.
So, if bitcoin (BTC) breaks above these levels, there may be a correction towards $24,000. On the other hand, if the support of $18,000 no longer holds, we can envisage a drop towards $15,000.
On the H4 chart, a rising wedge is forming inside the $18,000 support and $25,000 resistance. To confirm the bullish correction of bitcoin (BTC), the price must break the upper line of the rising wedge. Given the relevance of the $18,000 support, a rise towards the upper part of the pattern seems likely. Moreover, the RSI is currently hovering around 52. This indicates a balance between the strength of buyers and sellers.
BTC still in range after PCE
The price of bitcoin (BTC) remains in a range while the household consumer price index in the USA has just been published. Bitcoin made a correction towards $20,000, but it still remains in the $18,000 and $25,000 range.
Nevertheless, we still saw some volatility during today’s session. This “turmoil” comes ahead of the latest US consumer sentiment report, which is expected to show an increase in confidence.
The bulls will push the price, driving it past $20,000. However, as long as the various resistances mentioned above hold, we are unlikely to see a correction in bitcoin.
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