But further selling near the resistance line of a descending channel could leave Bitcoin facing a possible drop to last week’s lows or even a retest of the $42,000 area.
price Bitcoin It is looking to recover above $45,000 after another failed attempt to break the bullish barrier near $46,000.
At the time of writing, the value of Bitcoin against the US dollar is around $45,212, with the latest 4-hour sessions pointing to profit taking around the $45,500 supply area.
The lack of bullish conviction comes after Monday’s bearish reversal that pushed BTC/USD to lows around $43,465. The bulls are looking to recover from this setback, as suggested in the early trades Tuesday morning – a bullish view that centers on rallies and the $45,000 level has turned into a strong demand area.
What’s next for the price of bitcoin?
Bitcoin price is fluctuating within a descending channel on the 4-hour chart, indicating the possibility of further downward action.
From a technical point of view, the bulls have a chance to make more gains if there is a successful break above the channel resistance line. Such a move could support the bullish momentum and allow bitcoin price to target the upper resistance near the 200 moving average, around $47,600.
4 hour BTC/USD chart. Source: TradingView
On the other hand, selling might mean an additional test of the channel’s support line.
The 4-hour RSI, which is still below the breakeven point, indicates that sellers are holding on to a scorpion. The sloping curve of the SMA 50 line also reinforces the bearish view of BTC/USD.
Notably, the negative outlook for BTC/USD is following the formation of a death cross that includes the 50 and 200 EMAs on the 4-hour time frame. If the bearish scenario depicted on the chart materializes, the bitcoin price may come under further downward pressure in the near term.
In this case, the price of bitcoin could drop to its low on September 7 around $42,830 if the bears manage to break out of the demand area marked in gray.