Bitcoin is focusing on sustaining the uptrend but a break above the long term trendline is critical for continued growth.
BTC/USD must hold above the 50 SMA in the weekly range to avoid possible declines likely to test triangle support.
Bitcoin is facing the ongoing struggle under $9,000 simply because it failed to break above the key downtrend (check the descending trendline on the chart) several times. The weekly chart widens Bitcoin’s technical picture and we can clearly see what the buyers must do to keep the bullish momentum intact.
Interestingly, the market can be said to be bullish despite the lower swing highs and swing lows. For instance, BTC/USD is currently trading above the 50-day SMA (functioning as immediate support). The 50 SMA is above 100 SMA which is also above the longer-term 200 SMA, all of which point towards a bullish market.
The way the situation is, Bitcoin is coming from a stronger bullish market, although it failed to break the downtrend. Its main aim, for now, is to continue nurturing the uptrend and to do so, the price has to break the downtrend line. In other words, the action at the downtrend line remains very vital to further upward movement in the near term.
In the event, the price bounces off the downtrend line, Bitcoin would start to spiral under the 50 SMA as well as the 100 SMA. Extended declines could also test the 200 SMA and the triangle support. A break, particularly, below the triangle support would signal the beginning a stronger downtrend.
BTC/USD weekly chart
From a different technical perspective, Bitcoin is currently in the hands of the bulls as observed using the MACD. The indicator has recovered from the recent dip and is now settling above the mean line. This shows that bulls are in the driver seat, waiting for a technical breakout. However, low volume and many bulls waiting for a confirmed breakout continue to delay BTC/USD progress.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org