Can Bitcoin See A Bounce Off Its Moving Average?

Bitcoin BTC/USD is moving higher Friday and looks to possibly be making a bounce near the 200-day moving average.

The cryptocurrency market is down altogether and the majority of the tradable assets on Coinbase Global Inc. COIN are trading lower, although Bitcoin is defying the market and is trading slightly higher.

Bitcoin is up 1.76% over 24 hours at $48,243.05. 

Bitcoin Daily Chart Analysis

• Bitcoin was unable to hold above the $60,000 level and has been falling back lower and nearing the 200-day moving average. Previous strong support for Bitcoin has been near the $30,000 level.
• The crypto trades below the 50-day moving average (green) but above the 200-day moving average (blue). This shows the stock is trading in a period of consolidation. The 50-day moving average may act as resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) has been falling since mid October 2021 and now sits at 32. This RSI sits near the oversold region and shows that there have been many more sellers in the crypto than buyers.

What’s Next For Bitcoin?

Bitcoin is in a period of downward movement and is heading toward the 200-day moving average. Bulls in Bitcoin are looking to see the crypto be able to bounce off of this moving average and head back toward the $60,000 resistance level. Bears are looking to see the price fall below the 200-day moving average, possibly causing a period of bearish sentiment. Bears then would like to see the price head down toward support.