BTCUSD continues to stay above the 20-DMA for over a month already
Bitcoin reached the $16,000 barrier for the first time since January 2018 on Wednesday and retains a bullish bias while struggling to confirm a break above this important hurdle. Today, the leading cryptocurrency by market capitalization made another run at this handle but was rejected. As a result, a pattern similar to a double top was created on the four-hour charts.
The short- and longer-term picture for bitcoin remains positive. As history shows, an even more sustainable rally may take place next month. Besides, the September monthly candle closed above the $13,000 figure for the first time in three years. Also, the digital currency has been showing resilience above the $12,000 level for three weeks already while interest continues to come from mainstream and new retail investors as more and more investors bet on further gains in bitcoin price to fresh all-time highs above $20,000.
From the technical point of view, BTCUSD continues to stay above the 20-DMA for over a month already, following this ascending moving average. Meanwhile, the daily RSI has entered the overbought territory, trading above the 76 mark on Thursday, suggesting a downside correction could take place around the current levels before another potential bull run that will turn the mentioned $16,000 barrier into support.
On the four-hour chart, there is a potential double top that could be a sign of a limited upside potential in the short term. In other words, if BTCUSD fails to make a decisive break above the key hurdle, a local reversal could take place and bring the pair down. In this scenario, the initial significant support should be expected at $15,200, followed by $15,000. Once below this level, the price could target $14,600, and a breakdown from this area would be a bearish indicator with the potential to push the cryptocurrency towards the $12,000 figure.