The Bitcoin price was trying to recover around the last week of 2021. However, the coin could never pass the $53100 resistance, where the strong selling pressure dropped the price back to the $46100 mark. As the coin is trying to sustain above $46100, the bullish divergence in the RSI chart proposes a better possibility for a bullish reversal.
Key technical points:
- The BTC coin price is facing strong resistance from the 50-day EMA
- The daily RSI chart shows an evident bullish divergence
- The intraday trading volume in Bitcoin is $23 Billion, indicating a 15.34% loss.
Source- Tradingview
The last time when we covered an article on BTC/USD, the coin price broke out from a falling parallel channel pattern of the 4-hour time frame. Even though the price completed this bullish pattern, the pair could only reach the $53100 resistance level.
The price struggled at this overhead resistance for a few days, and after 50 EMA joined as resistance, this confluence triggered a bearish reversal and plunged to the $46000 support.
This minor pullback has again dropped the price below the 200 EMA line, indicating a bearish trend for this coin. Moreover, the 50 EMA line has proven to be a valid resistance level for the price.
The daily Relative Strength Index (41) displays bullish divergence in its chart, indicating the increasing bullishness in the price.
BTC Coin Could Form A Double Bottom Pattern
Source-Tradingview
If the BTC price starts rallying again, the coin would soon retest the $53100 resistance and also from a double bottom pattern in the daily chart. The neckline for this pattern is the same overhead resistance, which is the first obstacle for a recovery rally.
On a contract note, if the price rejects from the $53100 resistance, the coin will display a consolidating range in the 4-hour time frame chart.
The Moving average convergence divergence indicator shows the MACD and signal lines are approaching the neutral zone(0.00). A breakout from this above resistance and surpassing this middle level will provide more confirmation for the buyers.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/bitcoin-price-analysis-hidden-rsi-divergence-in-btc-coin-hints-rally-to-53000-mark/