Bitcoin has a little more to go downwards before finding supportBTCUSD has been in a rising channel since mid December 2020. It has, remarkably, maintained this rising channel and issues the channel's lower trend line as support around 4 times - this further providing evidence of channel integrity and lower trend line support.
Currently the price is approaching the lower trend line support and has a little more to go down before it reaches that level and potentially starts rising again. Based on trend analysis, the price level for support is between around $58000 and $57000.
A good entry point would be once the price hase moved into the zone, found support and moved back up with a minimum of 1 - 3 bars of confirmation of upward price trajectory (depending on risk preference) to avoid a false price bounce.
However, this would be a risky trade requiring active and closely monitored risk management due to the following cautionary notes.
The RSI and price are starting to show signs of longer term divergence. This divergence may be temporary and cancelled by the RSI beginning to trend upwards along with price off support from the lower trend line, however a divergence is a very strong technical signifier of trend reversal and demonstrates any future trade currently requiring a lot of risk management.
Additionally, the RSI recently reached an overbought peak and, coupled with its most recent peak being lower may be signalling a slowdown in the trend.
Furthermore, recent support from this lower trendline has not resulted in price movement reaching the upper trend level either signifying impending general downward pressure on price or general slow upward price movement.
Finally, in March 2021 the 50 DMA, lower trendline and price converged, which could have resulted in more powerful price action towards the upper trendline but didn't, further demonstrating resistance to major price movement upwards (although the total maximum price movement upwards was about a good 17% nonetheless, signifying profitable scalping potential based on this trend).
