Bitcoin price analysis has finally tilted towards a recovery mode where bulls can take a breather. The major cryptocurrency has reclaimed the key $21k level and is trading at $21,600 at the time of writing. The bulls will certainly be relieved at the pair starts to move near key resistance level of $22k where slight selling may be encountered.
The $21k level is also psychologically important since it is the 2017 all-time high and supported the pair for a fairly long time in its current free fall. The short-term relief rally is certainly inspiring some buying activity over the weekend as the traders prepare for the next week. From here on, volume will play a pivotal role in how the Bitcoin takes over key resistance levels next.
Bitcoin price movement in the last 24 hours: Investors looking for higher lows
Bitcoin needs to demonstrate that higher lows are in the offering in the coming week to reinstate investor confidence. Bitcoin price analysis reveals that the daily trendline is still descending but the current $21k level price action is defending this key level. Earlier, the price action has rejected the movement above the trendline in repetitive bearish legs.
The price has broken above the hourly trendline but is still way below the long-term descending channel that is diminishing. The upper boundary of the falling triangle pattern is still intact. The Bitcoin price analysis shows that the price is unable to follow the short-term bullishness.
Additionally, the 50-day moving average along with the upper trendline of the falling channel are significant barriers to the current recovery. The bulls need to defend the 2017 all-time high in order to grow beyond the current dent in the price.
BTC/USD 4-hour chart: Upper triangle a deterrent to the rising price action
Studies in Bitcoin price analysis shows that the blue channel in the upper triangle holds the key to the present upwards trajectory. A confirmation of the breakout above this falling channel will ensure that the bulls can carry the price ahead towards $24k easily in the coming weekend. Such a move accompanied by large volumes will only pave the way for a robust recovery towards the $26,000 resistance zone according to Bitcoin price analysis.
The RSI is slowly climbing towards the 55 range where the buyers will get more active as the valuation becomes attractive. The reversal pattern is also confirmed un the MACD on the hourly charts as the crossover materializes further. As per Bitcoin price analysis, the price, if it breaks above the triangle, can move towards $28,000 in the short term as the bulls enter a buying frenzy. Many daily short positions will be liquidated and there is a possibility of short squeeze.
Bitcoin price analysis conclusion: Bull trap or genuine bull run?
The volume data in the coming week will determine whether this is genuine bull run or just a bull trap. Also, how the price moves beyond the critical descending triangle will determine whether or not the bulls will make a long-term bottom at $20k and maintain the price above $24,000 resistance in the coming weeks. Bitcoin price analysis shows that if the price moves below the $18k once again, then traders should prepare for a concrete exit strategy.
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