- BTC flipped 7-month trend line resistance to support. Can the crypto sustain the upside?
- BTC’s user activity noticed a sharp dip as exchange inflows witnessed a downtrend.
The downtrends of the past seven months comprised a massive trend line resistance that Bitcoin buyers recently overturned to support. The world’s largest crypto maintained an upside stance to bounce from the high liquidity region around the $19.1K value area.
Bitcoin exhibited sideways actions after an anticipated break from an ascending channel within the previous week. The recent buying momentum renewal bolstered bulls to topple the barrier at the 20 Exponential Moving Average. Meanwhile, BTC buyers were yet to flex their muscles as the $19.8K resistance & the 50 Exponential Moving Average confluence posed more obstacles.
While publishing this content, Bitcoin changed hands at $19,607.84, gaining 1.83% within the previous day. Meanwhile, the bellwether crypto secured a rebound from its Point of Control (POC) (during this publication). That had bulls striving to challenge the restrictions of the value zone at $19.5K – $19.8K.
Overcoming this region would welcome a short-term revival, taking BTC beyond the short-term Exponential Moving Averages in the upcoming sessions. Such tendencies would open the gates to the initial massive resistance area at $20.3K – $20.8K.
Nevertheless, Bitcoin has endured a slow action phase for more than two weeks. Reversals from the 50 Exponential Moving Average might stretch the compression period near the Point of Control territory. Any near-term slides will likely secure a dependable rebounding zone from the newly converted trend line support.
Declines beneath this area would seek to cancel short-term bullish inclinations. The RSI (Relative Strength Index) noted a brief upside before plateauing around the midline. A massive close beyond the 50-level would indicate a slight momentum shift to the buyers.
User Activity & Exchange Inflows Decline
Bitcoin displayed a substantial daily user decline within the past few hours. The alt has never seen such a dip since July 2021. Nevertheless, its September record-peak exchange inflows exhibited declined trends within the last month.
Extended downsides on this metric would confirm enhanced investor sentiment during the upcoming sessions. However, the resistance confluence around $19.8K might trigger reversals, hindering short-term revival chances. A closing beyond this level would authorize a bullish stance.
Also, market participants should evaluate macroeconomic facets impacting overall financial sentiment for profitable bets.