Bitcoin / USD Technical Analysis: Strong Resistance
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- Bitcoin remains bullish in short-term with the number one cryptocurrency well supported on dips
- Short-term bulls need to invalidate a head and shoulders pattern on the four-hour time frame
- The daily time frame shows the BTC / USD pair moving towards major trendline resistance
BTC / USD Short-term price analysis
Bitcoin is bullish in the short-term, with the number one cryptocurrency increasingly well supported on pullbacks and trading well above its key 200-period moving average on the four-hour time frame.
The four-hour time frame also shows a large head and shoulders pattern, with a sizeable downside projection. Short-term bulls need to rally the BTC / USD pair above the February 24th trading high, in order to invalidate the bearish pattern.
Technical indicators on the four-hour time frame are currently neutral and providing no clear trading signal at present.
BTC / USD H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that a much larger bullish inverted head and shoulders pattern can be seen on the four-hour time frame, with the neckline of the pattern located around the $4,350 level.
MACD Indicator
The MACD indicator on the four-hour time frame is currently flat and failing to generate any clear trading signal.
RSI Indicator
The Relative Strength Index indicator on the mentioned time frame is currently neutral and providing no clear trading signal.
BTC / USD Medium-term price analysis
Bitcoin retains its bearish bias over the medium-term, with the number one cryptocurrency still trading well below its 200-day moving average.
The daily time frame shows that the BTC / USD pair is edging closer to major trendline resistance from a falling wedge pattern that has been in existence since February 2018.
If bulls can break out above the wedge pattern, the BTC / USD pair could see strong technical buying interest and could eventually rally back towards its key 200-day moving average
BTC / USD Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that the upper trendline of the wedge pattern is currently located around the $4,200 level, which also corresponds well with key resistance on the four-hour time frame.
MACD Indicator
The MACD indicator on the daily time frame is currently flat and is failing to generate any clear trading signal.
RSI Indicator
The Relative Strength Index is slightly bullish and holding above the neutral line on the daily time frame.
Conclusion
Bitcoin continues to show bullish signs over the short-term, with dip buying still prevalent on pullbacks towards key technical support. Both time horizons are showing that the number one cryptocurrency must soon break above the $4,200 level in order to generate a fresh wave of buying interest.
If Bitcoin moves lower from current trading levels, the $3,870 and $3,630 levels offer critical near-term technical support on the four-hour time horizon.
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