Bitcoin price analysis: BTC/USD hit pause button before another assault
- Bitcoin consolidates Tuesday’s gains.
- Technical picture implies that the recovery is not over.
BTC/USD is changing hands at $5,570, recovering from the intraday low reached at $5,485. The first digital coin has gained over 3% from this time on Tuesday and stayed marginally higher when compared to the levels registered at the beginning of Wednesday trading session.
Meanwhile, Tuesday’s strong recovery improved the technical picture and the sentiments on the market. According to Mati Greenspan, eToro’s prominent cryptocurrency expert, the Golden Cross on a daily chart signals that the bull’s trend is gaining traction.
“Ladies & Gents... The Golden Cross! Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). This is yet another sign that we’re back in a market.” he noted in his Twitter account.
Bitcoin’s short-term technical picture
On the intraday level, the picture is no less inspiring as the coin continues moving within the upside channel with the next focus on $5,738 (the upper border of the channel).
The initial support lies with $5,350 as this consolidation area limited the upside momentum for a long time. Now it transformed from a stiff resistance into a strong support.
Once it is cleared, the sell-off may be extended towards $5.280 (SMA50, 4-hour) and $5,220 (SMA100, 4-hour). The critical support is created by the lower boundary of the said channel at $5,140.
BTC/USD, 4-hour chart
Author
Tanya Abrosimova
Independent Analyst
