Bitcoin Cash has sustained the uptrend, breaking multiple supply zones within an ascending parallel channel.
BTC/USD must close the day above the channel’s middle boundary to avert potential losses and retain focus on $20,000.
Bitcoin is in a self-made bullish cycle after breaking multiple key barriers and flipping them into crucial support areas over the last few weeks. The recent run to $18,500 convinced most investors that $20,000 is nigh. However, analysts warn that a reversal is likely before Bitcoin makes the final liftoff to $20,000.
The flagship cryptocurrency is trading at $17,977 amid a relentless push from the bullish camp to sustain the uptrend. BTC embraced support at the ascending parallel channel’s middle boundary during the recent retreat from the new yearly highs.
This area’s support has made it possible for buyers to increase their position in anticipation that the bellwether cryptocurrency will soon resume hitting its all-time high.
BTC/USD daily chart
It is worth noting that Bitcoin must close the day above the channel’s middle boundary to avert losses and retain the focus on overcoming the hurdles at $18,000 and $18,500, respectively. The up-trending 50 Simple Moving Average (SMA) beneath the price is a crucial bullish indicator that the least resistance path is upwards.
On the other hand, sliding under the channel’s middle boundary could trigger immense selling pressure mainly due to panic among investors and the rush to cash out their profits before the price dives.
Besides the ascending channel’s lower limit support, Bitcoin’s contact points on the downside would be the 50 SMA in the 4-hour timeframe, the buyer congestion at the 100 SMA, the demand at $15,000, and the 200 SMA, currently at $14,431.
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 email@example.com