BTCUSD Price Technical Analysis – Eyes on This Bullish Channel!

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btcusd price, bitcoin price, bitcoin signals

BTCUSD Price Key Highlights

  • BTCUSD price has been trending higher on the 4-hour time frame, moving inside a bullish channel connecting the highs and lows since mid-November.
  • Price just got rejected on its latest test of the channel resistance and looks prime for a test of the support at the bottom once more.

BTCUSD price might be able to carry on with its climb if support at the channel bottom around $340 and the moving averages holds.

Mixed Technical Signals

The 100 SMA is still below the longer-term 200 SMA, indicating that the path of least resistance is to the downside. With that, the channel support might still give way and set off a longer-term downtrend for BTCUSD price.

In fact, a head and shoulders pattern appears to have formed recently, and this is a classic reversal signal. BTCUSD price has yet to break below the neckline support at $350 before confirming that a selloff is in the cards.

Meanwhile, stochastic is on the move down, also suggesting that sellers are taking control of price action. RSI is treading sideways but also appears to be heading south as well. Once these indicators reach the oversold levels, buying pressure could return and allow BTCUSD price to resume its climb.

The average directional index (ADX) is starting to move down from the 50.0 levels so a return to ranging market conditions might be seen. If so, price could simply bounce off support and move between the recent highs at $380. The bottom of the channel lines up with the 100 SMA, which might hold as a dynamic inflection point.

Intraday support level – $340

Intraday resistance level – $380

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com