Bitcoin Price Analysis: BTC shows an increase in bearish momentum
|- Bitcoin price is shaping a small cup pattern on the daily chart.
- A rebound off the February 28 low lacks impulsiveness.
- A failure to hold the 50-day moving average could lead to big losses.
Bitcoin price is working on its 6th consecutive positive month; a feat last accomplished in 2013. However, the flagship cryptocurrency seems primed for a downward impulse.
Bitcoin price not ready for new highs yet
Bitcoin price recovery from February’s low has lacked price impulsiveness and supporting volume. Meanwhile, the Relative Strength Indicator (RSI) created a bearish momentum divergence.
Due to the weak underlying technicals, it would not be a surprise to see Bitcoin price retest the February 28 low at $43,200 to shake out some holders.
BTC/USD Daily Chart
If BTC gains upward momentum instead, the short-term profit targets are the 1.618 and 2.618 Fibonacci extension price levels of the ongoing correction. These price targets sit at $67,000 and $81,500, respectively.
Key to Bitcoin price closing with its 6th consecutive positive month will be the support level framed by the convergence of the 50-day moving average and the January 8 high around $42,500.
A failure to hold this key barrier will leave BTC exposed to a much larger decline, with support coming in at the $30,000 - $28,000 price range.
The lack of decisiveness combined with the bearish momentum divergence provides a reason to be cautious in the short-term and to limit heavy buying until more conviction underpins the Bitcoin price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.