BITCOIN : Consolidation

(Wed, 17 Mar 2021). Bitcoin waded into uncharted territory over the weekend after crossing above prior highs and beyond $60,000 for the first time in its history. BTC/USD has since seen its ascent slow as bears take control and push the largest cryptocurrency by market cap down to support around the $55,000 mark. With little to suggest the longer-term rally has reached its end, recent losses might serve as healthy consolidation before the next leg higher.

To that end, bulls should eye the rising trendline from the coin’s January high as it looks to provide a modicum of support in the shorter-term. Slightly beneath resides another rising trendline derived from recent swing lows which may provide secondary support should it be required.

A quick glance at the MACD indicator on the 4-hour chart reveals a potential bullish signal as the both the MACD and signal lines cross beneath 0 while price remains above the 200-period exponential moving average. Should the MACD line overtake the signal line while beneath 0, as price trades above the 200EMA, it could signal a continuation higher is ahead. Until such a development occurs, Bitcoin may continue to bleed lower as it seeks support from the various trendlines.

Either way, the technical landscape remains encouraging as recent losses have failed to establish lower-lows and the broader series of higher-highs continues. With continued adoption from some of the largest banks and financial institutions, the tailwinds behind Bitcoin stand firm which could feed into greater gains and new all-time highs in the days to come.

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