Bitcoin’s price has started to show signs of life after trading near an important support zone. A bullish crossover along with the MACD and higher lows on the Awesome Oscillator indicated that bulls were making a comeback. At the time of writing, BTC traded at $41,776, up by 0.16% over the last 24 hours.
Bitcoin 4-hour time frame
The $40K price floor has been quite significant for Bitcoin since last year. The region was under the spotlight especially during September, when BTC retraced by over 20% from $52,000. As new longs were introduced around $42,000, BTC surmounted a 70% hike in the following month and broke new records.
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The 4-hour time frame currently shows that BTC has traded close to this support for three days and some key indicators have begun their recovery process.
Indicators
Bitcoin’s 4-hour RSI was under constant pressure after touching overbought levels on 23 December. Consecutive lower peaks had kept the RSI limited to a resistance trendline. However, buy momentum was finally returning as the trendline flipped bullish over the last 24 hours.
Similarly, the MACD spotted a buy signal on 8 January and currently sat above a resistance trendline of its own. Finally, higher lows on the Awesome Oscillator indicated that selling pressure was escaping the market.
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Although the abovementioned signs were encouraging, BTC had make the most of these developments. A daily close above $42K would generate more momentum, after which the $44K ceiling can be challenged. BTC’s near-term goal would be to gain access above the 23.6% Fibonacci level, which is an important support region. Should BTC’s value trade below $42K, expect some lateral movement with $40K ready for support. Meanwhile, a close below $40K would allow bears to push through to $37,500 and $36,600.
Conclusion
Bitcoin’s indicators are making headway but the price must close above $42K to fully capitalize on the bullish effort. If sellers deny this key breakout, expect BTC to move sideways over next week.