- Bitcoin price bounces off short-term moving average support to reverse Monday’s losses.
- BTC stays above 21-day SMA for five straight weeks, even as fortnight-old resistance guards immediate upside.
- RSI, MACD suggest continuation of short-term BTC/USD consolidation and brewing volatility.
- Successful defense of mid-July breakouts keep Bitcoin buyers hopeful of witnessing fresh record high.
Bitcoin price (BTC/USD) prints modest gains above $118,000 during Tuesday’s U.S. session as buyers try to retake control after Monday’s downbeat performance. In doing so, the BTC repeats five-week trading above the 21-Day SMA while staying beneath a fortnight-long resistance.
It’s worth noting, however, that the key momentum indicators like 14-day Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) suggest BTC/USD may continue paring July’s heavy gains without welcoming the bearish trend.
Bitcoin: Daily Chart Signals Brewing Rally
Even if the fortnightly resistance line and the 21-day SMA restrict short-term BTC/USD moves between $117,900 and $120K, the crypto major’s sustained trading beyond the resistance line from December 2024 keeps the buyers hopeful. With this, the optimists pay little heed to recent bearish signals from the MACD and a gradual decline in the RSI toward the 50.0 neutral line.
Should BTC bulls manage to provide a daily closing past the $120K trend-line resistance, the all-time high marked earlier in July around $123,240, and the $125K psychological barrier might gain the market’s attention.
However, an upward-sloping resistance line from early March, forming part of a multi-month “rising wedge” bearish chart pattern, currently around $126,500, will be a tough nut to crack for the Bitcoin buyers.
Alternatively, a daily close beneath the 21-day SMA support of $117,900 could trigger BTC’s quick fall toward the previous resistance line from December 2024, around $114K by the press time.
The BTC/USD pair’s downside past $114K becomes interesting to watch as it highlights the bottom line of the aforementioned “Rising Wedge”, close to $109,600, a break of which will confirm a broad bearish chart pattern.
While the theoretical target for the rising wedge confirmation is below the $60,700 mark, a gradual fall toward the $100K and then to the 200-day SMA support of $98,800 can’t be ruled out past $109,600 breakdown.
Bitcoin: Four-Hour Chart Highlights Bearish Channel
A two-week-old descending trend channel portrays the BTC/USD consolidation on the four-hour chart, currently between $120K and $113,900. Adding strength to the downside support is the 200-bar SMA, highlighting odds of witnessing a quick fall to the 10-week-old horizontal support zone of $110,600-$110,800 can’t be ruled out.
If the selling persists, the BTC bears keep the reins past $110,800, deeper levels discussed on the daily chart will gain the market’s attention.
On the flip side, a clear break of $120K resistance will defy the short-term bearish chart formation and direct the Bitcoin buyers toward the latest peak of around $123,240. However, any further rise will open doors to the resistances discussed in the daily chart.
Overall, Bitcoin might witness short-term consolidation in prices, but the broad bullish trend remains intact.
