- 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.
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