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The Bitcoin price dropped more than 5% over the past 24 hours to trade at $43,290.20 at press time as Spot Bitcoin ETF trading introduces a wave of sell volume to the market.
The Bitcoin Price Rebounds From Support
4-hour chart for BTC/USDT (Source: TradingView)
The Bitcoin price plummeted below a medium-term positive trend line that formed on its charts over the past couple of weeks. As a result, the market leader was resting on the key support level at $42,450 at press time. The cryptocurrency’s price does seem to have rebounded off of the significant mark. Should bulls identify BTC’s current price as a buy opportunity, the Bitcoin price could rise back above the positive trend line.
In this bullish scenario, BTC may reclaim the $44,440 support. This could then give the Bitcoin price the foundation needed to rise to the subsequent resistance level at $46,700 in the following few days.
This bullish thesis may be invalidated if the Bitcoin price breaks below the aforementioned $42,450 support level. In this alternative scenario, BTC may plummet down to $40,160 in the short term.
Is a Turnaround on the Cards?
Technical indicators on BTC’s 4-hour chart suggested that the market leader’s negative trend may be approaching its end. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) hinted at a potential bullish reversal of BTC’s trend.
The positive slope of the MACD Histogram could indicate that a reversal of the bearish trend may take place soon. However, traders and investors will want to wait for a confirmation. An early confirmation could be if the MACD Histogram turns more positive in the next 8 hours. A more reliable indication of the bullish change in trend will be when the MACD line crosses above the MACD Signal line. However, traders stand the risk of losing out on some gains if they wait for this technical flag.
In addition to the MACD indicator, the RSI also suggested that buyers are currently growing stronger. This was evident by the narrowing gap between the RSI line and its Simple Moving Average (SMA) line. However, bears still had the upper hand, as the SMA was positioned well above the RSI line. Nevertheless, BTC is currently in oversold territory, which may attract buyers in the coming 24 hours. If these technical flags are validated, the Bitcoin price could return to above the positive trend line on its chart in the following 48 hours.
The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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