Bitcoin (BTC) – Exposed to renewed bearish pressures while tiptoeing near the channel upper-line

Bitcoin (BTC) – Exposed to renewed bearish pressures while tiptoeing near the channel upper-line

Posted on Sunday, June 5 2022 at 9:34 pm GMT+0000

Bitcoin (BTC) returned to a consolidation mode near 30,000 after last Monday’s bullish breakout pushed the price out of the two-week-old tight range and above the descending regression channel stretched from the late May peak.

The crypto-king failed to capitalize on those bullish developments and swiftly slipped back towards the upper line of the channel, where it stabilized over the last few days.

The technical indicators are still feeding some pessimism at the current time. Although the negative slope of the 20-day simple moving average eased totally, it is still lying comfortably below the 50-day moving average, endorsing the broad medium-term downtrend. The momentum oscillators on the other hand are currently exhibiting weak signals in momentum and have yet to compliment a clear direction. The RSI is following a horizontal path just beneath the 50 mark, the stochastics are tangled in the vicinity of the neutral spectrum and the momentum indicator is flattening at zero.

The price is currently tiptoeing between the 20-day simple moving average and the upper line of the channel. If the crypto-king slides below the latter and cracks the neighboring 28,000 floor, bears will eye the more than a year-low of 25,400. Failure to bounce here will generate another bearish extension to 20,000.

However, if the bulls re-emerge and manage to set a foothold around the upper line of the channel, they will need to jump over the most recent high at 32,400 and the nearby 50-day simple moving average seen around 33,700 to gain some confidence and advance towards the May 1st inside swing low of 37,400. By clearing this barricade too, they will likely stretch to the April 21st inside swing high of 43,000.

Summing up, the world’s best digital currency failed to post a significant recovery last week and is still exposed to renewed bearish pressures, with confirmation coming below 28,000. Only a thrust beyond the 50-day simple moving average could raise some optimism among buyers.