But further selling near the resistance line of a declining channel could leave Bitcoin facing a potential fall to last week’s lows or even a retest of the $42,000 area.
Bitcoin price is looking to recover above $45,000 after another failed attempt to break the bullish barrier near $46,000.
At the time of writing, Bitcoin’s value against the U.S. dollar is around $45,212, with the last few 4-hour sessions indicating profit-taking around the $45,500 supply area.
The lack of bullish conviction follows Monday’s bearish reversal that pushed BTC/USD to lows around $43,465. Bulls are looking to recover from this setback, as early trading on Tuesday morning suggested – an optimistic view that hinges on the tops turning the $45,000 level into a robust demand area.
What’s next for the price of BTC?
Bitcoin price is fluctuating inside a descending channel on the 4-hour data chart, suggesting that further downside action is likely.
From a technical perspective, bulls have a chance to make further gains if there is a successful break above the channel’s resistance line. Such a move could sustain the bullish momentum and allow the Bitcoin price to target the upper resistance near the 200 moving average at around $47,600.
BTC/USD 4-hour chart. Source: TradingView
On the other hand, selling could mean a retest of the channel support line.
The 4-hour RSI, which remains below the breakeven point, suggests that sellers are holding on. The sloping 50 moving average line also reinforces the bearish view for BTC/USD.
Notably, the negative outlook for BTC/USD follows the formation of a death cross involving the 50 and 200 moving averages on the 4-hour time frame. If the bearish scenario painted on the chart comes true, the price of Bitcoin could experience further downward pressure in the near term.
In this case, Bitcoin prices could slide back towards the September 7 lows around $42,830 if the bears manage to push past the demand area highlighted in gray.