BTC Technical Analysis: Constant Struggle At Declining Trendline

The BTC price action shows a bearish reversal from the resistance confluence of the declining trendline and the 50-day EMA. However, the retracement comes as a retest of the broken range we mentioned in our previous article. Should you avoid taking a bearish entry in Bitcoin?

Key Points:

Source - TradingView

BTC Technical Analysis

The BTC price action struggles to exceed the long coming resistance trendline. Currently, the Bitcoin price action displays a bearish reversal from the 50-day EMA to retest the broken consolidation range.

The declining trend in the intraday trading volume during the bearish candles supports the possibility of a bullish reversal which may break above the resistance trendline. Hence, the sideline traders hoping for a bear cycle must wait till the prices drop under the broken resistance level of $19,600.

In a bullish scenario, the sideline traders can shortly find a breakout entry opportunity if the prices reverse from the broken resistance level of $19600.

Technical Indicators

The RSI slope sustains above the halfway line, reflecting a bullish attempt to avoid further downfall. Additionally, the declining trend in the bullish histograms diminishes the bullish gap between the fast and slow lines teasing a bearish crossover.

Therefore, the technical indicators highlight a weakness in retracing Bitcoin prices and increasing bullish dominance. As a result, the BTC technical analysis teases a bullish breakout shortly.

Resistance Levels - $20000 and $22450

Support Levels - $19600 and $18850