While BTC is increasing alongside an ascending support line, it’s also showing considerable weakness. A breakdown from this line could be the catalyst for a sharp downward move.
On Aug 23, BTC reached a high of $50,500. This was very close to the 0.618 Fib retracement resistance level and the $51,200 horizontal resistance area.
BTC created a long upper wick and a potential shooting star candlestick. Today’s close is crucial, since it can either confirm or reject the potential reversal from the shooting star.
Technical indicators are showing weakness. The MACD and RSI have created bearish divergences, and the former is giving a bearish reversal signal. The Stochastic oscillator is also very close to making a bearish cross.