- Bitcoin price slows down the new parabolic recovery slightly above $55,000.
- The 200-day SMA provides Bitcoin with the much-needed support to prevent a correction from wiping the gains to $40,000.
Bitcoin seems to have started another bull cycle following a lengthy battle in June and July to break the barrier at $40,000. Following the selloff from $65,000 in May, BTC explored levels marginally under $30,000 three times before the ongoing rally.
A confirmed break above $42,500 last week allowed bulls to take complete control of the trend and dominated price action during the weekend. At the time, Bitcoin gained traction and brushed shoulders with $45,000 but retreated to $43,000.
The bullish price action continued on Monday; however, Bitcoin only stepped slightly above $46,000, delaying the move to $50,000. Meanwhile, the bellwether cryptocurrency is trading at 45,700 amid a fierce battle between the bulls and the bears.
Is Bitcoin Bullish Outlook To $55,000 Still Intact?
According to the Moving Average Convergence Divergence (MACD) indicator, the prevailing trend favors the bulls. This comes after a sustained bullish signal since July 22. As the 12-day EMA crossed above the 26-day EMA, the odds for breakout increased. With the MACD moving higher above the mean line, Bitcoin’s uptrend is bound to gain traction for gains above $55,000.
At the same time, BTC trades above all the relevant moving averages on the daily chart, including the 50 SMA, the 100 SMA, and the 200 SMA. As long as support at $45,000, highlighted by the 200-day SMA holds, buyers will keep their focus on highs above $50,000. Note that trading above this level could easily bolster Bitcoin to $55,000.
BTC/USD Daily Chart
On the other hand, the Relative Strength Index (RSI) levels at 70. A break into the overbought could allow bulls to push the price higher. However, overbought conditions could quickly flip bearish with Bitcoin starting to correct. As the RSI retreats into the neutral zone, the sellers’ grip on the price will tighten.