Bitcoin (BTC) – Gradually recovering inside the regression channel

Bitcoin (BTC) – Gradually recovering inside the regression channel

Bitcoin (BTC) has been gradually recovering inside the regression channel pulled from the November all-time high after a bounce off the more than 6-month low at 33,000 early last week and appears ready to confront a crucial resistance area.

Technically, despite the latest price improvements, the falling simple moving averages are sponsoring the prevailing bearish structure, and the death cross between the 50- and 200-day moving averages is keeping odds for a significant change in the long-term technical picture low.

That said, momentum oscillators are currently revealing growing bullish momentum suggesting that the current upside correction still has some room to run. The ROC has crawled above the zero line and the stochastic are sloping upwards.

The spotlight is currently on the crucial 39,500 – 40,500 area encapsulating the 20-day simple moving average and the upper line of the channel, which bulls need to snap to gain further confidence. In such a scenario, they will head towards the 50-day simple moving average and the nearby January 13^th high at 44,500.

Alternatively, should the aforementioned area prove solid enough to curb the recovery and direct the price back lower, sellers will then call for a test of the 33,000 low. Moreover, they will likely push towards the 30,000 – 28,600 section, which was last active during June and July.

In brief, although Bitcoin continues to face unfavorable trend signals, odds for additional upside corrections seem to be growing with confirmation expected to come above 40,500.