BTCUSD (Bitcoin) has been trending upwards since the beginning of the year, posting a 10-month high of 25,250 on Tuesday. However, the king of cryptocurrencies seems to be lacking the necessary momentum to march higher and has been trading sideways for the past few daily sessions.
The momentum indicators are depicting this loss of positive momentum for the digital asset. Specifically, the MACD histogram dropped beneath both zero and its red signal line, while the stochastic oscillator is sloping downwards after exiting the 80-overbought zone.
Should the bearish tendency strengthen, the price could move lower to test the recent support of 23,400. A break below that region could shift the spotlight to the February low of 21,400. Failing to halt there, further declines may cease at the December resistance of 18,370, which could act as support in the future.
To the upside, if Bitcoin regains lost ground, the recent rejection region of 25,250 might act as the first line of defence. Higher, the bulls could aim for 27,960 before the May resistance of 32,380 appears on the radar. Even higher, the 37,150 barrier could prove to be a tough one for the price to overcome.
Overall, BTCUSD has been moving without clear direction in the past few daily sessions, unable to extend its recent uptrend. Nevertheless, a profound break above the 25,250 ceiling might revive bulls’ hopes for a sustained rally.
