Bitcoin has remained relatively strong as tensions erupted between the US and Iran over the last couple of days. Can the $BTC price hang on to support around the $62K level, or if attacks fro
Bitcoin has remained relatively strong as tensions erupted between the US and Iran over the last couple of days. Can the $BTC price hang on to support around the $62K level, or if attacks from both sides escalate, could this be what sends Bitcoin spiralling into a bear market bottom?
Source: TradingView
As expected, the $BTC price came back down, given its slightly overbought nature of the last day or two. Also, the price found good support on the top of the falling wedge, at horizontal support, and at the bull market trendline.
After bouncing, the price has currently come up against the $63K horizontal resistance which is preventing further gains up to now. There will possibly be more sideways price action to come, unless of course events in the Middle East drag the U.S. stock market down, which in turn would likely take the $BTC price down with it.
Source: TradingView
Perhaps the main positive in the daily time frame is that the $BTC price is holding above the bull market trendline. This is one of the last key lines in the sand that prevent a much deeper bear market. That said, the price has already been below, but so far candles have not closed beneath in the higher time frames.
The bearish case is that the $BTC price is continuing to make lower highs and lower lows, and just seems rather weak even when the short-term trend is up. The 50-day SMA is descending towards the price and this is likely to provide further resistance.
Add to this the ascending wedge that may be developing in the Relative Strength Index (RSI). The price would tend to fall down out of this type of structure more often than not.
Source: TradingView
The weekly chart is not firing warning signals in the price action, at least not yet. However, when one looks at the RSI in this high time frame, it can be seen that even if the bulls get a solid bounce here, the RSI indicator line will have much to do to get above the descending trendline that stretches from early 2024 and the beginning of the huge 8-month bull flag of that year.
The first 3 touches of this trendline spelled out the bearish divergence to the rising bull market price action. It would appear that this divergence has played out, or the $BTC price is still possibly in the midst of it.
What looks pretty certain is that this trendline is going to play a very key role in how much longer the current bear market is going to persist.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
