BTCUSD (Bitcoin) has been in a downtrend after the price failed to surpass the 25,200 region in mid-August. Although the king of cryptocurrencies has been trading within a tight range in the past month, it broke its sideways pattern to the upside and crossed above its 50-day simple moving average (SMA).
The momentum indicators suggest that bullish forces are subsiding. Specifically, the MACD histogram is weakening above zero and its red signal line, while the RSI is declining but remains above the 50-neutral mark.
Should selling pressures intensify, the price could initially test the 50-day SMA, currently at 19,670. Breaking below that level, the bears might aim for 18,170, which is the lower boundary of the cryptocurrency’s recent rangebound pattern. A violation of the latter could open the door for the 21-month low of 17,588.
Alternatively, if buyers regain control and propel the price higher, the recent rejection point of 20,900 may act as the first resistance. Conquering this barricade, further upside moves could then stall at the September peak of 22,750 before the four-month peak of 25,200 comes under examination. Failing to halt there, the price might then ascend towards 27,950.
All in all, even though BTCUSD exhibited an upside breakout and decisively jumped above its 50-day SMA, its advance seems to be running out of juice. Therefore, a close above the recent ceiling of 20,900 is needed to signal the resumption of the recovery.
