Bitcoin (BTC) – Stepped below the middle line of the channel, exposing itself to additional declines

Bitcoin (BTC) – Stepped below the middle line of the channel, exposing itself to additional declines

Bitcoin (BTC) failed to stage remarkable progress past the February peak of 45,900 and fell harshly snapping multiple key support barriers last of which being the middle line of the regression channel pulled from January lows.

Following those developments, questions are arising about whether the crypto-king will soon be able to gather the necessary traction to revive the mid-March rally and unlock fresh highs.

Answer is, the recent decline introduced some weakness to the technical picture as the price dropped below the 21- and 55-day simple moving averages, and the former shifted southwards endorsing vanishing buying forces.

Moreover, the MACD slipped beneath its signal line and is approaching the zero level, while the ROC is holding some distance below its equilibrium level, both suggesting further negative price actions.

Further losses should see the February 1^st inside swing high of 39,300 being tested before eyes turn towards the channel’s lower line and the 37,600 – 36,300 area of congested lows posted between February and March. Following a clear penetration of that barricade, bears will target the 34,300 – 33,000 zone.

However, if bulls intend to reclaim commend with the aim to restore the current bullish pattern, there are several obstacles which they need to clear before claiming victory, starting from the middle line of the channel going through the exponential moving averages until the crucial 45,900 February peak. Yet, a tougher battle could take place around the most recent top of 48,200 a breach of which will accelerate the rally towards the 52,100 December high.

All in all, Bitcoin has stepped below the middle line of the regression channel, exposing itself to additional declines. Yet the medium-term outlook is still looking positive and only a drop below 37,100 could alter that view.