Bitcoin has rebounded, validating a long-term ascending support line, but a move below that zone might accelerate the drop in its value. The daily RSI is bullish since it created a downward divergence, achieving the 50 mark, whose reactivation would represent considerable upward development.
The price of Bitcoin (BTC) shows daily and weekly bullish reversal signals. However, there must be a decisive move above USD 19,000 to confirm that setback in the trend.
Satoshi Nakamoto created Bitcoin, a cryptocurrency whose smallest unit, the satoshi, is worth 0.00000001 BTC. In addition, there will only be 21 million coins, which makes it a scarce asset.
Since Bitcoin hit its all-time high of nearly USD 69,000 in November 2021, a bearish market has affected its price. That month, it dropped to a low of USD 15,476 while the rest of the crypto market followed its steps.
After that, price action has been relatively bullish, as Bitcoin has rebounded, validating a long-term ascending support line that has been in place since March 2020. That line is around USD 16,000, but a move below that zone might accelerate the drop in its value.
However, technical indicators seem to be bullish about the price of the pioneering cryptocurrency. For example, the daily Relative Strength Index (RSI) has generated the highest divergence in history, breaking out of the oversold territory.
The price of Bitcoin must regain the USD 19,000 area to be bullish. That horizontal area corresponds to the high reached in 2017 and became support in May 2022.
The current decrease in the price of Bitcoin would be a mere deviation if there were a move above that zone. That will also make the RSI exceed its bearish divergence trendline, thus confirming a bullish reversal.
The Price of Bitcoin Might Initiate a Bullish Reversal
A daily technical analysis of the value of Bitcoin reinforces the relevance of the USD 19,000 resistance zone. That area rebounded several times in June and October before the price dropped in November, alongside a descending resistance line.
The daily RSI turns out to be bullish since it created a downward divergence in November when it achieved the 50 mark. Reactivating that line would represent considerable development to the upside.
Price action also shows bullish signs, as Bitcoin has created a bullish recovery candlestick over the last 24 hours.
If the value of Bitcoin broke above the USD 19,000 resistance area or descended, its outlook would be bullish.
Meanwhile, Bitcoin is trading at around 17,160 and has accumulated a 0.4% gain over the last week. While its daily trading volume is above USD 20.34 billion, its market capitalization is about USD 329.99 billion, according to CoinGecko.
Investors should investigate BTC before buying it to learn about its all-time high, behavior, and possible future prices. That will help them make more accurate investment decisions and reduce the risk of losing money. However, it is a matter of time before seeing where the market will take that cryptocurrency.
By Alexander Salazar