Is this another opportunity for Bitcoin bulls

Bitcoin’s gains of 2% over the past week have been quite quiet. Although BTC’s bullish trend was still visible on the charts, there were warning signs that the market was losing momentum. However, a close above $48,000 will negate most of the anxiety. Bitcoin was trading at $46,789 at the time of writing. This is a 1% decrease over the 24 hours.

Bitcoin Daily Chart

After 11 weeks, Bitcoin’s 200-SMA (green), changed to bullish on 9 August. However, buyers didn’t take advantage of this trend. Bulls had another chance at the 61.8% Fibonacci Extension ($45619), which also clashed the long-term moving average. This could cause another spike in the near future.

Failure to do this could lead to serious consequences moving forward. A negative outcome could see BTC reverse its trend towards the 38.2% Fibonacci levels, where it would be susceptible to losing its bullish structure.

Reasoning

Relative Strength Index remained bullish, but it has reached lower peaks at various levels. A bearish divergence can cause a market drop towards the 50% line, which is where the market would be most sensitive.

The MACD was also at the edge of a bearish crossover, which indicated some near-term risks. Momentum was also uncertain on the Awesome Oscillator, which presented no clear direction for the future. Although all three indicators were in comfortable positions, they pointed to risks that were difficult to ignore.

The bears will try to take advantage of any indicators that fall below their respective half-lines. BTC had to close at $48,000 in order to overcome these signals.

Conclusion

BTC didn’t have any lifelines to close above $48,000. RSI showed bearish divergences while MACD, AO and MACD were moving towards a negative outcome. BTC could reach $42,000 if a breakout does not occur in the next few days. Bulls would have to be hard at work to start a new recovery.