Bitcoin (BTC) – Has not escaped the downward path despite showing an appetite for recoveryPosted on Sunday, September 11 2022 at 9:13 pm GMT+0000
Bitcoin (BTC) price has produced an applaudable retaliation against the late summer mudslide. The crypto-king bounced aggressively from the upper border of the 18,900 – 17,600 congested area of lows posted between mid-June and July crossing above the Tenkan-sen line, which has been preventing any close higher since mid-August.
Technically however, the recent positive propulsion was not enough to send the price inside the Ichimoku cloud, and did not harm the medium-term bearish structure. But the silver lining here is that it pushed the momentum oscillators to change course, raising odds for additional bullish developments in the near-future. The ROC jumped to the positive region and appears intending to stretch its uptrend, while the MACD crossed above its signal line and is ramping up to meet the zero line.
In order to boost gains, Bitcoin will need initially to close beyond the cloud’s lower surface currently seen around 22,000. A thrust beyond the cloud’s upper surface around 23,600 will hit a tough wall near the 25,200 – 25,400 zone linking the May 12th bottom and the most recent top posted on August 15th. Successfully conquering this tough zone will upgrade the medium-term outlook to bullish and unleash a faster rally towards the 28,000 area.
Nevertheless, if the cloud manages to curb the recent recovery attempt, sellers will likely push through the Tenkan-sen line, eying another test of the 18,900 – 17,600. By cracking that base this time, they will speed up the decline to the 16,200 – 15,000 region extending back to November 2020. Lower, the sell-off could pause somewhere around the August 2020 high at 12,500.
In summary, Bitcoin has not escaped the downward path despite showing an appetite for recovery. Unless it rallies above 25,400, sellers will remain active in the market.