Bitcoin (BTC) declined slightly after hitting a local high of $ 52,000 on December 27. However, its bullish structure remains intact.
On December 23, Bitcoin’s price broke a descending resistance line in place from the historic high on November 10.
This suggested that the course correction has ended. Following this, BTC continued to rise until it hit a high of $ 52,000 on December 27.
However, since then, BTC has been in decline, and may come back to the resistance line to validate it as support. This line is currently close to 48,000 dollars.
Technical indicators are mixed. The RSI, which is an indicator of momentum, was rejected by the 50 line (red arrow). Price movements above this line are generally considered bullish.
Thus, a bullish trend reversal is not yet confirmed.
Bitcoin’s current upward movement
The six-hour chart shows that BTC is trading in an ascending parallel channel from its December 4th low.
On December 27, the price was rejected by the midline of the channel, which coincides with the resistance zone of $ 51,600 (red arrows). This started the current short-term downward movement.
Despite its decline, Bitcoin is still trading within the channel, and its support line is near $ 48,000. As long as it stays inside this channel, the bullish structure remains intact.
Analysis of the hourly chart reveals support between $ 48,000 and $ 48,750. This support is created by the 0.5-0.618 Fibonacci retracements obtained by measuring the most recent part of the BTC rise.
Likewise, this is a horizontal support area, in addition to coinciding with the support line of the aforementioned ascending parallel channel.
Thus, if the upward movement of Bitcoin were to continue, one would expect the price to descend to an upper low within this zone.
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