Bitcoin (BTC) Prices Enters Correction Phase After Recent Short Rally

• According to the BTC daily chart, an upward movement is expected.
• Bitcoin has been down 1.18% in the last 24 hours.

Since hitting a local high of $42,976 on April 21, the price of bitcoin has been declining. On April 26, the market hit a low of $37,700. The breakdown of the $37,700 area, which served as support since April 18, was initially prompted by the drop.

However, the price rose and recovered the territory on April 27. Bullish developments are seen as a result of this since the prior collapse was seen as merely an anomaly. Between $37,700 to $40,700 is where Bitcoin is now trading.

Bullish Divergence on the Cards

According to the BTC daily chart, an upward movement is expected. However, bullish divergence, growing since April 10, is credit for this. Such divergences typically precede significant bullish trend reversals in the daily period.

This idea is supported by the six-hour time frame, which indicates bullish divergences in the RSI and MACD. If BTC manages to break out of the current range, $43,000 would be the next region of resistance. Fib retracement resistance is around 0.5; thus, this is where to aim.

The price activity on the two-hour chart is negative despite the optimistic signals from the six-hour and daily time frames. Since BTC is now trading near the support line of an ascending parallel channel, this is the rationale for its current price action. Because such channels often involve corrective movements, a breakdown is almost certain. According to CMC, the Bitcoin price today is $39,180.55 USD with a 24-hour trading volume of $34,446,554,800 USD. Bitcoin has been down 1.18% in the last 24 hours.