But further selling near the resistance line of a declining channel could leave Bitcoin facing a potential dip to last week’s lows or even retesting the $ 42,000 area.
Bitcoin’s price is looking to recover above $ 45,000 after another failed attempt to break the upward barrier near $ 46,000.
At the time of writing, Bitcoin’s value against the US dollar is around $ 45,212, with the latest 4-hour sessions indicating profit-taking around the $ 45,500 supply area.
The lack of bullish conviction follows Monday’s bearish reversal which pushed BTC / USD to lows around $ 43,465. The bulls are looking to recover from this setback, as suggested by the first trades on Tuesday morning – a bullish view that centers around the highs turning the $ 45,000 level into a robust demand area.
What’s next for the price of BTC?
The price of Bitcoin is fluctuating inside a descending channel on the 4-hour data chart, suggesting that further bearish actions are likely.
From a technical standpoint, bulls have a chance of making further gains if there is a successful break above the resistance line of the channel. Such a move could support the bullish momentum and allow the price of Bitcoin to target the upper resistance near the 200 moving average, around $ 47,600.
4-hour BTC / USD chart. Source: TradingView
On the other hand, the sale could mean a further test of the channel’s support line.
The 4-hour RSI, which remains below the breakeven point, suggests that sellers are holding onto the hand. The sloping curve of the 50 moving average line also reinforces the bearish opinion for BTC / USD.
Notably, the negative outlook for BTC / USD follows the formation of a death cross involving the 50 and 200 moving averages on the 4 hour time frame. If the bearish scenario painted on the chart comes true, the price of Bitcoin may experience further downward pressure in the near term.
In this case, the price of Bitcoin could slide to the September 7 lows around $ 42,830 if the bears manage to push past the demand zone highlighted in gray.
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