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  • Bitcoin price is shaping a small cup pattern on the daily chart.
  • A rebound off the February 28 low lacks impulsiveness.
  • A failure to hold the 50-day moving average could lead to big losses.

Bitcoin price is working on its 6th consecutive positive month; a feat last accomplished in 2013. However, the flagship cryptocurrency seems primed for a downward impulse.  

Bitcoin price not ready for new highs yet

Bitcoin price   recovery from February’s low has lacked price impulsiveness and supporting volume. Meanwhile, the Relative Strength Indicator (RSI) created a bearish momentum divergence.  

Due to the weak underlying technicals, it would not be a surprise to see Bitcoin price retest the February 28 low at $43,200 to shake out some holders.  

BTC/USD Daily Chart

If BTC gains upward momentum instead, the short-term profit targets are the 1.618 and 2.618 Fibonacci extension price levels of the ongoing correction. These price targets sit at $67,000 and $81,500, respectively.

Key to Bitcoin price closing with its 6th consecutive positive month will be the support level framed by the convergence of the 50-day moving average and the January 8 high around $42,500.  

A failure to hold this key barrier will leave BTC exposed to a much larger decline, with support coming in at the $30,000 – $28,000 price range.

The lack of decisiveness combined with the bearish momentum divergence provides a reason to be cautious in the short-term and to limit heavy buying until more conviction underpins the Bitcoin price.