Bitcoin (BTC) recovers to $ 50,000 level Where to go next?

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Bitcoin (BTC) rose slightly during the week of August 16-22, creating its fifth consecutive bullish weekly candlestick.

It is approaching a crucial resistance level at $ 51,200, a break above that could trigger a sharp move higher.

Long-term BTC outlook

Despite the increase over the past week, the weekly chart is showing mixed signs.

On the bearish side, the price previously broke from an ascending support line and could now be about to validate it as resistance (red icon).

On top of that, the Stochastic Oscillator made a bearish cross. Additionally, the supertend is bearish from the May 19th drop (red line) and the downtrend line is currently near $ 54,000. Finally, the volume remains pale compared to that of the May crash.

If this was a bullish reversal, we would expect the volume to be higher than during the downside, or at least closer to it.

On the bullish side, the MACD is above 0 and has given a bullish reversal signal. On top of that, the RSI rose above 50.

Therefore, while there are both bullish and bearish signs, the weekly chart leans slightly towards being bearish.

BTC chart by TradingViewWill BTC burst?

The daily chart shows that BTC is approaching a crucial resistance level at $ 51,200. This is both the 0.618 Fib retracement resistance level and a horizontal resistance area created by the May wick highs (red icon).

Similar to the weekly chart, technical indicators are showing signs of weakness despite the bullish price action. Both the RSI and MACD histograms generated bearish divergences. The Stochastic Oscillator is also on the verge of a bearish cross and volume is virtually nonexistent.

BTC chart by TradingView

The six-hour chart shows that BTC has potentially been trading in an ascending parallel channel since July 19.

While it reached the resistance line of the channel on July 30, it has failed to do so since. It moved closer on August 9, but generated a bearish divergence.

Both the bearish divergence and failure to hit the upper limit of the structure are seen as signs of weakness.

Combined with the fact that BTC is also trading near a crucial horizontal resistance, this makes a decisive breakout unlikely.

BTC chart by TradingViewFuture movement

If a downward movement were to occur, the main support levels would be at $ 42,300 and $ 38,000. The first is the support level of the 0.382 Fib retracement and an area of ​​horizontal support while the second is horizontal support.

However, the exact values ​​would depend on where the peak is reached.

BTC chart by TradingView

For the latest Bitcoin (BTC) analysis from BeInCryptos, click here.

Disclaimer All information on our website is posted in good faith and for general information purposes only. Any action that the reader takes on the information found on our website is strictly at his own risk.

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