Bitcoin (BTC) – Will likely keep attracting buying interest in the coming sessions

Bitcoin (BTC) – Will likely keep attracting buying interest in the coming sessions

Posted on Tuesday, April 19 2022 at 8:42 pm GMT+0000

Bitcoin (BTC) stepped decisively on the lower-line of the regression channel pulled from the January 24th low around 38,600 and seems heading to paint its second large green daily candle following the last three weeks’ sharp descent.

The recent convergence in the Bollinger bands is mirroring the slight ease in the harsh volatility that cost an 18% decrease in the crypto leader’s value. On the other side, oscillators are showing that bulls are fighting back, as the stochastic %K line has overstepped the %D line and exited the oversold territory, while the RSI is ramping up to meet the 50-neutral mark. Moreover, the gentle upward trajectory in the latter, accompanied by a weakening price action over the last week reminds of a bullish divergence and hence raises some optimism that an upside reversal could soon take place.

That said, the bulls seem now ready to confront the mid-Bollinger band around 42,700 which is residing slightly below the middle line of the channel. If they manage to clear those limits, they will push to conquer the neighboring February top of 45,900 and call for a fresh test of the March 28th high of 48,200. Piercing through this ceiling as well, they will aim for the December 27th top of 52,100.

Alternatively, if sellers retake control and steer the price lower, they will once again face the channel’s lower line. Successfully diving past this line, they will challenge the 37,600 – 36,300 support zone molded by the February and March lows, strengthened by the lower-Bollinger band. While some distance lower, a tougher battle could take place around the 34,300 – 33,000 support foundation.

In brief, Bitcoin may keep attracting buying interest in the coming sessions following the recent rebound, especially if the price manages to overstep the middle line of the channel.