Bitcoin (BTC) – Could be on the verge of a medium-term outlook upgrade

Bitcoin (BTC) – Could be on the verge of a medium-term outlook upgrade

Bitcoin (BTC) has been marching higher in the previous few sessions and managed to jump over the 20-day exponential moving average and outside the descending regression channel pulled from the late March peak.

The softened negative slopes of the 20-day exponential moving average, is mirroring the recent minor improvement in sentiments. Something that is also reflected by the momentum oscillators. The RSI has been advancing in the negative region and is currently flirting with its 50-neutral threshold while the MACD has been ramping up above its signal line and seems heading towards the zero mark.

If buyers manage to create additional traction and with certainty snap the most recent high of 22,400, they will likely overrun the 50-day exponential moving average seen around 23,500 and advance towards the 24,500 – 25,400 zone linking the 161.8% Fibonacci extension level of the last week’s down-leg and the May 12^th bottom. Moving past this barrier, they will lift the price towards another restrictive zone around 28,000, encapsulating the 261.8% Fibonacci level.

Yet, some caution is still required given the fact that momentum indicators are still hovering within the bearish area, and have yet to confirm a convincing positive backing for upside price action.

If sellers re-emerge and secure a significant daily close below the 20-day exponential moving average, a strong battle could take place near the 18,900 – 18,600 area of congested intraday lows posted recently, which encompasses the upper-line of the channel. Within a breathing distance, the mid-June low of 17,600 will act as the line of defense against a steep sell-off that will initially extend to the 15,000 round psychological number.

In brief, Bitcoin could be on the verge of a medium-term outlook upgrade, but traders should remain cautious until the price successfully pierces above the 22,400 boundary. An immediate drop below 18,600 will shrug the positive scenario and bring the sellers back into play.