Bitcoin is experiencing a bit of pullback today after yesterday approaching highs near the $8500 mark. The pullback is on low volume which leaves many believing this recent bull run has further to go. Sunday and Monday were two huge days for Bitcoin’s price with it going from the $7750 levels to the mentioned highs of $8500, an approximately 10% gain.
The price is currently trading above the daily 200EMA which many look to as an indicator of whether the price is in an uptrend or a downtrend. In the event of a drop in price, the 200EMA should act as a significant support level. Price and RSI seem to be currently pricing in higher lows, another sign of an uptrend.
The higher low is more clearly seen on the 4hr chart. The drop has taken place over the space of about half a day and has been below average volume with the most recent candle being the lowest recorded volume.
The MACD is approaching a crossover of its signal line to the downside on the 4hr which is a bearish signal, but with the overall price action being strongly bullish as of recent, this bearish signal is unlikely to have an impact.
The same can be examined on the hourly chart with the higher low being formed currently forming an upward trendline. Over the next few hours, this upward trend line will either act as support or will break down. In the case of it breaking down, the 50EMA on the hourly will most likely act as support.
- The price is trading above the daily 200EMA, and the price and RSI are forming higher lows, both signs of an uptrend.
- Price reached highs near $8500 but is currently undergoing a pullback and is trading around $8200. The pullback is on low volume showing there is not much selling pressure.
- Upward trendline forming connecting higher lows. In the event that this doesn’t hold, 50EMA on the hourly will most likely act as support.
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