- Bitcoin continued its descending channel trajectory on the daily chart.
- The recent gains have helped the coin create a golden cross at its EMAs.
Bitcoin [BTC] fluctuated for more than seven months within a well-established down-channel. After leaving the $53.8K support level earlier this month, BTC has risen almost 18% towards the upper limit of the channel.
The crucial question is whether the bulls can break past this resistance and initiate a breakout or succumb to another downward move.
At the time of writing, BTC was trading around $63,446. The recent price action showed a tug-of-war between buyers and sellers, with Bitcoin hovering around the edge of the pattern.
Returning from important support
Source: TradingView, BTC/USDT
It is worth noting that the 20-day EMA recently crossed above the 200-day EMA, confirming a ‘golden cross’ on the daily chart. The empirical trends of the king coin show how a sustained rise on the chart usually follows such a crossover.
A break above this level could set the stage for a sustained rally towards $67,000 – $70,000.
However, the price had yet to cross the upper limit of the downward channel. If buyers can’t get through, it could lead to a short-term pullback. A rejection from here could lead to a drop to $60,000 or even $55,838.
The RSI stood at around 62.52 at the time of writing. It hovered above the neutral 50 mark, showing a strong bullish edge, but had yet to reach the overbought mark. This showed that there is still room for upside potential if the bulls maintain their momentum.
It is important to note that the RSI marked higher highs in addition to flatter highs on price action. This highlights the chances of a potential bearish divergence with the price.
On the other hand, the MACD (Moving Average Convergence Divergence) indicator confirmed the bullish momentum, with the MACD line remaining above the signal line.
Derivatives data revealed THIS
Source: Coinglass
BTC volume fell 19.93% to $47.39 billion, reflecting relatively weak daily movement. Similarly, open interest fell 0.58%, indicating traders were hesitant to enter new positions at current levels.
The long/short ratio over the past 24 hours was slightly bearish at 0.9869. This indicated balanced sentiment with a slight lead for short positions.
Read Bitcoin’s [BTC] Price forecast 2024–2025
However, top traders on Binance showed more confidence in the bulls with a long/short ratio of 1.0172.
The golden cross between the 20-day and 200-day EMAs indicated bullish potential, but traders should look for confirmation with a close above the upper limit of the down channel.