Bitcoin: Buying opportunities for BTC investors will arise if…

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice

Bitcoin’s [BTC] four-month streak of low­er highs and troughs final­ly ceased after its recent hike above the trend­line sup­port (white, dashed). While the recent move­ments affirmed an increase in buy­ing edge, the sell­ers strug­gled to keep the price below the EMA ribbons.

Owing to the con­stant build­ing-up of buy­ing pres­sure near the 55 EMA, the buy­ers could aim to con­tin­ue the up-chan­nel recov­ery at the very least. At press time, BTC was trad­ing at $23,077, down by 2.96% in the last 24 hours.

BTC Daily Chart

Source: Trad­ingView, BTC/USD

After an expect­ed rec­tan­gle bot­tom break­down, BTC’s south­bound jour­ney matched its Decem­ber 2020 lows and halt­ed with­in the $18.9k-$19.2k range.

Over the past month, the king coin has marked an up-chan­nel recov­ery from its bear­ish pen­nant break­down. An >24% ROI dur­ing this phase has helped BTC jump above its 20 EMA on the dai­ly timeframe.

As the low­er trend­line of the up-chan­nel coin­cid­ed with the 20 EMA along­side the trend­line sup­port, the $22.4k-level could impede sell­ing efforts.

A rebound from this lev­el could pro­pel a retest of the upper trend­line of the up-chan­nel in the $24.7k-$25k range. The buy­ers must wait for a con­vinc­ing close above the rib­bons before plac­ing calls. Fur­ther, recent buy­ing vol­umes have exceed­ed the near-term sell­ing pres­sure. Unless the bulls see a melt­down in their vig­or, BTC could con­tin­ue its grad­ual growth in the com­ing days.

Rationale

Source: Trad­ingView, BTC/USD

The Rel­a­tive Strength Index (RSI)’s break above the mid­line res­onat­ed with the recent bull­ish edge. A close below the mid­line could point to poten­tial bull­ish invalidation.

With the OBV see­ing rather slug­gish troughs over the last few weeks, any sub­stan­tial revival could con­firm a bull­ish diver­gence with price. Addi­tion­al­ly, the DMI lines revealed a buy­ing edge. How­ev­er, the ADX pro­ject­ed a weak direc­tion­al trend for the coin.

Conclusion

In light of the con­flu­ence of the trend­line sup­port and the up-chan­nel along­side a slight edge on the indi­ca­tors, BTC could con­tin­ue its ongo­ing growth. The tar­gets would remain the same as discussed.

Fur­ther, investors/traders should fac­tor in macro-eco­nom­i­cal fac­tors affect­ing the broad­er sen­ti­ment. This analy­sis will help them increase the chances of a prof­itable bet.

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