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BTC/USD: It’s All about H1 Structure
Upside momentum slowed considerably for BTC/USD last week after engaging with resistance on the weekly timeframe at $35,060. Technically, the trend is north, but according to the weekly chart’s Relative Strength Index (RSI), the major cryptocurrency is overbought. Air space beyond the current resistance exposes resistance at $38,523, a level complemented by a channel resistance taken from the high of $31,050.
$35,060, therefore, is a pivotal level to watch this week.
Drilling down to the daily timeframe, support at $34,048 refused to yield in recent movement. Unlike the weekly scale, there is scope to continue navigating higher price levels on the daily chart until resistance at $36,361. This is underpinned by a Golden Cross, a long-term bullish trend signal involving the 50-day simple moving average ($29,245) crossing above the 200-day simple moving average ($28,366). Against this backdrop, however, you will note that the RSI on the daily timeframe has displayed early signs of negative divergence (average gains are beginning to slow versus average losses) just south of indicator resistance at 89.35.
Meanwhile, short-term price action out of the H1 timeframe works with support and resistance at $34,003 and $35,048, respectively, and an ascending support line extended from the low of $33,000.
In view of the analysis, in support of a pullback this week, sellers are reinforced by weekly resistance at $35,060 and overbought conditions on the weekly and daily charts (RSI). On the other hand, buyers are buoyed by the uptrend visible on the weekly and daily timeframes, the Golden Cross and support from the daily chart at $34,048. Therefore, technical studies appear to display a balance between buyers and sellers right now, and some traders may interpret this as a signal to sit on their hands for now and let the H1 timeframe decide: should price breakout above resistance at $35,048, this helps validate a bullish vibe, while a breakout below support at $34,003 could be sufficient to consider a bearish scenario.
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About the Author: Editorial team of BIPNs
