Bitcoin price is once again challenging its downward trend line on a daily time frame. So far, there has been one false breakout (as shown on the chart below) and this shows the strength of the downward trend line. However, this doesn’t mean that the bulls have completely lost control of the price. No, absolutely not.
The price is trading above the 100-day moving average shown in orange and this confirms that we still have strong odds for the (overall) uptrend to continue.
However, we do need the price to break above the 50-day moving average, shown in pink, and right now, the price is in a constant battle with this average.
The RSI can play an important role here, the chart below shows that it has been trading below the downward trend line. But, if the RSI breaks above this trend line, this would send the confirmation signal that the upward break of the 50-day moving average by the price is for real this time. But, if the price breaks below this moving average, then all bets would be off the table again.
For now, the bulls are in a difficult place and they need strength and confidence which could only come if the price stays above the two important moving averages: 50-day and 100-day.
Minor support zone 8,398
Major support zone 7,366
Minor resistance zone 12,041
Major resistance zone 13,195
