Bitcoin is working to change its trajectory from a slowdown to a recovery. However, despite its efforts, the coin remained on a downtrend for several days following its inability to surpass its previous all-time high of $73,833.
Will Bitcoin continue to rise after this rejection?
At the time of writing, BTC price was trading around $63,846, down about 27% from its all-time high and up 0.06% in the last 24 hours . Although the price is trading below the 100 simple moving average (SMA) on the 4-hour chart, on the daily chart it is still trading above the 100 SMA.
Looking at the support and resistance In the image below, we can see that the price attempted twice to breach the $59,579 support level and failed. The first time Bitcoin reached this level, it pushed the price higher to create a new all-time high. So now that it has reached this level again, this could push BTC even further.
The circles in the image indicate the two points:
Moreover, with the Relative Strength Index (RSI) forming in the picture, the indicator suggests an upward movement as the RSI signal line is trending slightly above the 50% level. This also suggests that buyers are still very active in the market and against sellers.
The MACD indicator on the 4-hour chart also suggests that BTC could rise as the MACD histograms are tendency above the zero line. The MACD line and Signal line have crossed and are about to cross the MACD zero line, indicating an uptrend, as shown in the image below.
Possible trend that could occur
In other words, since Bitcoin price is trying to move higher, if it manages to break above the minor resistance level of $67,895.24, it could start moving towards its major resistance level of $73,833.34 . Moreover, if prices exceeded this level, they could even go further and create a new all-time high.
On the contrary, if Bitcoin fails to surpass its previous highs, it could decline towards its previous support level of $59,579.72. If it goes below the zone, the price could undergo a deeper correction to create a New bottom.
Featured image from iStock, chart from Tradingview.com
