Bitcoin (BTC) prepares for another breakout attempt

Bitcoin

(BTC) resumed its gains on September 3, but was rejected before reaching the horizontal resistance area at $51,200. Sponsored Sponsored

BTC has broken out of the short-term falling resistance line and is making another attempt to reach this area.

Bitcoin approaches resistance

On September 3, Bitcoin attempted a move above the $51,200 resistance area. However, it only managed to reach the $50,450 level, after which it formed a long upper wick and turned back.

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Technical indicators give a mixed outlook. On the bearish side, MACD almost turned negative after generating a significant bearish divergence. Similarly, RSI

also generated a bearish divergence.

On the bullish side, RSI is trying to invalidate the bearish divergence by creating a hidden bullish divergence (yellow) and the supertrend is also bullish.

Thus, there are readings that support both bullish and bearish scenarios.

However, the price action is still leaning towards bearish as BTC is trading below the $51,200 area and has formed several upper wicks which are seen as signs of selling pressure.

Bitcoin (BTC) prepares for another breakout attemptBitcoin (BTC) prepares for another breakout attempt BTC chart courtesy of Tradingview

Future movement

Similar to the daily chart, the six-hour chart provides mixed readings.

After Bitcoin broke down from a rising support line on August 26, it made several attempts to regain it, but was unsuccessful.

In addition, the RSI is freely moving above and is below 0, indicating an indeterminate trend direction. Also, while MACD is positive, this indicator has generated a bearish divergence.

Therefore, while the indicators are mixed, the price action is still leaning towards the downside.

Bitcoin (BTC) prepares for another breakout attemptBitcoin (BTC) prepares for another breakout attemptBTC chart courtesy of Tradingview

On the 2-hour chart, however, we can see that bitcoin has already broken out of the falling resistance line and validated it later as support (green icon). This rebound also coincided perfectly with the support level at the 0.5 Fib retracement.

Therefore, it seems likely that BTC will make another attempt to break out above the resistance area at $51,200. Currently, we are unable to determine whether

Whether or not it will be successful. Bitcoin (BTC) prepares for another breakout attemptBitcoin (BTC) prepares for another breakout attemptBTC chart via Tradingview

For the latest analysis of Bitcoin (BTC) by BeInCrypto, click here.

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