Bitcoin Rallies and Completes a Failure Swing Bottom

Published 10/01/2021, 07:37 AM
Updated 07/09/2023, 06:31 AM

BTC/USD rallied today, breaking above the $45,050 barrier, marked by the high of Sept. 24, completing a complex failure swing bottom formation. In our view, today’s surge has turned the short-term outlook back to positive.

We believe that the bulls may challenge the $48,415 territory soon, marked by the highs of Sept. 15 and 16, but they may decide to take a break after doing so. This could result in a setback, but we do expect it to stay limited above $45,050.

The bulls may retake charge and push the action above $48,415 this time around, a move that may pave the way towards the $50,840 zone, defined as resistance by the inside swing low of Sept. 6.

Looking at our short-term oscillators, we see that the RSI edged north and moved above its 70 level, while the MACD runs above both its zero and trigger lines, pointing up. Both indicators detect high upside momentum and corroborate our view for further advances in this cryptocurrency.

Now, to abandon the bullish case, we would like to see a dip back below $44,040, marked by yesterday’s high. This may signal the crypto’s return within the consolidation range and turn the outlook around to neutral. We could see through some declines to Tuesday’s low of $40,755, the break of which could aim for the $39,415 hurdle, defined as a support by the low of Sept. 2.Bitcoin BTC/USD 4-hour chart technical analysis

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