Bitcoin (BTC) – Tiptoeing alongside the lower line of the regression channel

Bitcoin (BTC) – Tiptoeing alongside the lower line of the regression channel

Posted on Sunday, April 24 2022 at 9:09 pm GMT+0000

Bitcoin (BTC) is tiptoeing alongside the lower line of the regression channel pulled from January lows after multiple failed attempts last week to recover beyond the 50-day simple moving average.

The aforementioned line managed previously this month to halt the sell-off triggered by the 200-day simple moving average and seems stubbornly trying to prevent a crucial dampening in the medium-term outlook.

Glancing at the oscillators, they are signaling that negative pressures are somewhat fading. The RSI is somehow improving in the bearish region, and the stochastic %K line turned marginally higher and just crossed beyond the %D line. Both are suggesting that an upside reversal may be nearing.

If buyers manage to mold a foothold around the channel’s lower line, they will steer the price towards the 50-day simple moving average and the last week inside high at 43,000. By overrunning the latter, they will gain further confidence to conquer the February peak at 45,900 and propel higher towards the March top at 48,200, with the aim to upgrade the medium-term technical picture beyond that crucial bar.

On the negative side, the market action is currently taking place just above the 38,500 – 37,100 congested zone molded by the April 18th and the March 8th inside lows, which may act as a safety net preventing any deterioration towards the 34,300 – 33,000 section.

To summarize, Bitcoin looks like trying to create a base around the channel’s lower line, though a significant-close above 43,000 is required to confirm additional buying activity. Meanwhile, A breach below 37,100 will dash hopes for meaningful bullish developments.