- Bitcoin price bounced off a weekly low at $43,437, but upside potential above $45,000 is shaky.
- A short-term descending parallel channel contributes to the rising overhead pressure.
Following a massive crash last week, Bitcoin extended the bearish leg below $46,000 on Monday, whereby a low was traded at $43,437 (data by Coinbase). Shortly after, a minor recovery came into the picture, allowing bulls to regain control during the Asian session on Tuesday.
Meanwhile, the flagship cryptocurrency is trading at $45,074 and appears to be struggling with resistance near $46,000. Bitcoin must hold onto the immediate support at $45,000, a move the will likely keep the uptrend to $46,000 intact. A four-hour close above $46,000 could see BTC close the gap to $47,000.
Bitcoin Price Upside Remains In Jeopardy
The four-hour chart brings into light a gradually forming descending parallel channel. The channel’s lower boundary recently played a key role, preventing declines from stretching to $42,000 and $40,000, respectively. Nonetheless, the upper trendline is a bulls’ nightmare that continues to limit movement toward $50,000.
Bitcoin’s potential recovery to $50,000 is bound to face immense resistance at the 50 Simple Moving Average (SMA), highlighted at $47,000. The 200 SMA currently holds at $47,595, and the 100 SMA near $48,000 are likely to hinder the uptrend.
BTC/USD Four-Hour Chart
Note that the recent 50 SMA crossing below the 200 SMA marked the beginning of a bearish trend for the bellwether cryptocurrency. Although this pattern is not a golden cross, many analysts see it as a bearish signal.
Realize that closing the day below the channel’s upper boundary could trigger more losses as bulls get weary. On the downside, the bulls’ ability to stay above $45,000 will determine Bitcoin’s next trend’s direction.
Bitcoin Price Bullish Outlook
The same four-hour chart shows that the Moving Average Convergence Divergence (MACD) has a minor bullish outlook, accentuated by the 12-day EMA crossing above the 26-day EMA. If the MACD closes the gap to the mean line, we can expect Bitcoin to keep moving nearer to $50,000.
Besides, the Relative Strength Index (RSI) currently draws nigh to the midline after bouncing off support at $36. If the RSI gains traction above 50, Bulls will increase their grip on price, thus validating the uptrend.
Bitcoin Intraday Levels
Spot rate: $45,177
Trend: Bullish bias
Resistance: $46,000 and $47,000
Support: $45,000 and $42,000