That could be because of the tight correlation between Bitcoin and the S&P 500 and the uncertainty about the equity market’s performance in the next week.
While some analysts expect weakness in the near term, others believe that Bitcoin could be in a consolidation phase with a large portion of its upside in the four-year halving cycle yet to come.
Although Bitcoin’s price action has been lackluster in the past few days, some altcoins, which found a place in Coinbase’s list of 50 crypto assets under consideration for listing, have witnessed strong trending moves.
Bitcoin formed an inside-day candlestick pattern on April 16, indicating indecision among the bulls and the bears.
If the price turns down and breaks below $39,200, the selling could intensify.
The 4-hour chart shows that the price has been clinging to the 20-EMA, indicating that bulls are attempting a comeback.
This positive view will invalidate in the short term if the price turns down from the current level and breaks below $39,200.
Contrary to this assumption, if the price breaks and sustains below the 20-day EMA, it will suggest that the bears are active at higher levels.
On the downside, a break and close below the 20-EMA could invalidate the bullish view in the short term and sink the pair to the 50-SMA.
The 20-day EMA is attempting to turn up and the RSI is above 53, indicating a minor advantage to the bulls.
If bulls sustain the price above the 20-day EMA, the possibility of a rally to the overhead resistance at $27 increases.
The bears are defending the overhead resistance at $22 but a minor positive is that the bulls have not allowed the price to break below the 200-SMA.
The 20-EMA and the 50-SMA are completing a bullish crossover and the RSI is in the positive territory, indicating advantage to buyers.