Bitcoin Outlook: BTC/USD Price Tries to Build Higher
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BTC/USD Price Technical Outlook
BTC/USD – A Bullish Comeback
On May 25, Bitcoin declined to a four-week low at $7,598 then reversed higher and closed later the weekly candlestick in the green with a 2.5% gain.
Alongside this, the Relative Strength Index (RSI) remained flat above 50 highlighting paused bullish momentum.
Bitcoin PRICE DAILY CHART (MaR 1, 2019 – June 4, 2020) Zoomed Out
Bitcoin PRICE DAILY CHART (March 20 – June 4, 2020) Zoomed In
Last week, Bitcoin tested the 50-day moving average yet the price rallied later and generated a bullish signal. On May 28, the cryptocurrency climbed to the current trading zone $9,080 - $10,507 indicating that the bulls were still in charge.
A close above the high end of the aforementioned zone signals that bulls could rally BTC/USD towards $11,093, and a further close above that level may extend the rally towards $12,320.
On the other hand, a close below the low end of the zone could send Bitcoin towards $7,824 and a further close below that level may embolden bears to press towards $6,540.
That said, the daily and weekly support and resistance levels marked on the daily chart should be kept in focus.
Bitcoin PRICE FOUR Hour CHART (May 16– June 4, 2020)
On May 27, Bitcoin rallied above the downtrend line originated from the May 20 high at $9,837 and generated a bullish signal. On Tuesday, Bitcoin made an over three and a half-month high at $10.382. Today, the price trades above the uptrend line originated from the May 26 low at $8,701 although, any violation of this line would be considered a bearish signal.
A break below $8,832 could send BTC/USD towards $8,220 in turn, any break in the other direction i.e. above $9,937 may trigger a rally towards $10,301.Nonetheless, the daily support and resistance underlined on the four-hour chart should be watched closely.
Written By: Mahmoud Alkudsi, Market Analyst
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.