Key Points
- Bitcoin has seen a near 18% rally after bouncing off the $53.8K support level, pushing towards the upper boundary of its down-channel.
- A ‘golden cross’ on the daily chart suggests bullish potential, but confirmation is needed with a close above the down channel’s upper boundary.
Bitcoin has been following a downward channel trajectory, but recent gains have triggered a golden cross on its exponential moving averages (EMAs).
Bitcoin’s Current Status
Currently, Bitcoin is trading at around $63,446. The recent price actions indicate a battle between buyers and sellers, with Bitcoin teetering on the edge of the pattern.
The 20-day EMA recently crossed above the 200-day EMA, forming a ‘golden cross’ on the daily chart. This typically precedes a continued upside on the chart.
Potential Market Movements
If Bitcoin breaks out above this level, it could trigger a sustained rally towards the $67,000 – $70,000 range. However, the price has yet to break the upper boundary of the downward channel. If the buyers fail to push through, it could trigger a short-term pullback, potentially leading to a drop towards $60,000 or even $55,838.
The RSI is currently around 62.52, indicating a strong bullish edge. However, it’s important to note that there are signs of potential bearish divergence with the price. Meanwhile, the MACD indicator reaffirms the bullish momentum.
Bitcoin’s volume has dropped by 19.93% to $47.39B, suggesting a relatively weak daily movement. The long/short ratio for the last 24 hours is slightly bearish at 0.9869. However, top traders on Binance show more confidence in the bulls with a long/short ratio of 1.0172.
The golden cross between the 20-day and 200-day EMAs suggests bullish potential, but traders should wait for confirmation with a close above the upper boundary of the down channel.
