Support above the 50 Simple Moving Average (SMA) on the 4-hour played a crucial role in ensuring that BTC stays afloat and avoids declines to lower levels like the support at $46,000. Meanwhile, BTC has bounced off the immediate anchor at $48,000 and is rocking at $49,500.
Bulls have eyes on levels beyond $50,000 despite the sellers fighting for dominance. The 4-hour chart brings to light an improving bullish outlook. For instance, the Moving Average Convergence Divergence (MACD) appears to have settled above the midline.
Similarly, a call to buy is likely to manifest as the MACD line (blue) crosses above the signal line. The MACD is a technical indicator that follows the trend of an asset and measures its momentum. When timed correctly, traders can use the MACD strategy to identify possible entry and exit positions.
BTC/USD 4-hour chart
Consequently, the chart highlights that Bitcoin is trading in an ascending parallel channel. Slightly above the prevailing market price is the middle boundary. The resistance at this area must be broken for Bitcoin to make a more vigorous approach at $50,000 and the levels toward $60,000.
On the other hand, the breakout may fail to occur if the 50 SMA is lost as support. Trading under the channel’s lower boundary will also open the door for losses towards $40,000.
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