Bitcoin Price Analysis: BTC/USD at cross-cross with two crucial channels, what to expect?
|- Bitcoin price struggles to avert more declines even as the bearish flag pattern breakdown lingers.
- The improving short term technical picture could see BTC reclaim $7,400 and $7,500 respectively.
Bitcoin price has a minor bullish bias on Tuesday and towards the end of the Asian session. The volatility on the market is high while Bitcoin is trading at $7,364. The largest cryptocurrency in the world has adjusted from an opening value of $7,306 and also touched $7,412 (intraday high) to the upside.
Looking at the 4-hour chart, Bitcoin is pushing for recovery within a short term ascending channel. This channel can also be interpreted as a bearish flag pattern. Which means, Bitcoin is still in danger of breaking down towards $7,000 and even re-entering the $6,000 range.
On the other hand, Bitcoin is also battling a long term descending channel resistance. The channel support has been shuttered ones when BTC dived to lows close to $6,500. However, the price swiftly reclaimed the position within the channel.
Consequently, the decision to follow either channels will depend on the price action in the near future. Meanwhile, the prevailing trend is bullish. The RSI is gradually moving toward the average. Continued movement north will see the price reclaim the ground above $7,400 and push towards $7,500.
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