BTC price started the session on a green note and consolidates in a range between $40,200 and $40,800. The price failed to sustain the previous day’s recovery gains as the bulls lack the conviction to record further gains. BTC needs a confirmation to pass the crucial juncture, the price stuck near the level previously too.
- BTC’s price looks exhausted after it picked up momentum in the last session.
- A prolonged range-bound session is expected as the price remains pressured below the neckline of the significant head & shoulder pattern.
- However, as the trading volume rises during the period of accumulation an upper breakout could not be ruled out.
BTC price gives mixed-signal
Let’s understand on the technical chart, where the BTC price is heading. The formation of a bullish formation in the last trading session, the hammer candlestick pattern indicates the presence of buyers. However, the price retraced instead of moving up suggesting some upside pressure on the asset. The 50-day EMA (Exponential Moving Average) at $41,698 acts as a strong hurdle.
In addition to that, the price continues to hover below the ascending trend line connecting the left and right shoulder of the famous “Head & Shoulder” pattern. Under the influence of the formation, BTC’s price retreated 22% from the swing highs of $47,717 made on March 30.
The sustained selling pressure compelled investors to liquidate their money from the upper price range and offer a chance to the bears to earn some money.
The relative strength index (RSI) gives bullish divergence by the price since April 11. Thus, making bulls hopeful for a quick recovery toward $44,000.
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On the contrary, a failure to hold the previous session’s low near $38,210.34 could upset the bullish calculation. A daily close below $37,500 would find solace in $35,000.
As of publication time, the BTC/USD is trading at $40,482.95 down 1.13%.
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