Bitcoin (BTC) resumed its rally on September 3, but was rejected before reaching the horizontal resistance area of $ 51,200.
BTC has broken out of the short-term descending resistance line and is making another attempt to reach this area.
BTC approaches resistance
On September 2, BTC attempted to break out of the $ 51,200 resistance area. However, it only managed to hit a high of $ 50,450 before making a long top wick and reversing.
Technical indicators provide a mixed perspective. On the bearish side, the MACD almost turned negative after generating a significant bearish divergence. Likewise, the RSI also generated a bearish divergence.
On the bullish side, the RSI is trying to invalidate the bearish divergence by creating a hidden bullish divergence (yellow) and the superstrend is also bullish.
Hence, there are readings that support both bullish and bearish possibilities.
However, the price action remains bearish as BTC is trading below the $ 51,200 area and has created several upper wicks, which are seen as signs of selling pressure.
Future movement
Similar to the daily time frame, the six hour chart also provides mixed readings.
After BTC broke an ascending support line on August 26, it made several attempts to get it back, but was unsuccessful.
In addition to this, the RSI is freely moving above and below 0, a sign of an indeterminate trend. Also, while the MACD is positive, it has generated a bearish divergence.
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So while the indicators are mixed, the price action still tends to be bearish.
However, the two-hour chart shows that BTC has already broken out of a descending resistance line and validated it as support later (green icon). bounce also perfectly matched the 0.5 Fib retracement support level.
refore, it seems likely that BTC will make another attempt to break out of the $ 51,200 resistance area. Currently, we cannot determine whether or not it will be successful.
For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.
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