Bitcoin is retracing today after recording price increases during most of this week. Today’s drop has so far been on low volume showing little strength behind it and seems to be meeting support at the 50 EMA.
Price action managed to close significantly outside of the triangle pattern which has been forming since March yesterday. This is a bullish signal although price action has done this before and afterward quickly retraced back into the triangle.
The RSI and MACD are increasing corresponding with an increase in buyer momentum. The RSI has been forming higher highs and higher lows, showing a gradual increase in buyers. MACD has begun to diverge to the upside showing more of a shift from seller to buyer momentum. Prior to this week, we have seen a prolonged period of low activity trading in Bitcoin. For this reason, it does not take much activity to result in a bullish response from these indicators.
If the price can continue to rise from here, resistance will be anticipated between $6750 to $6850. This has been a point of significant trading activity and liquidity in the past, and if large Bitcoin traders known as whales still have a bearish outlook on the price of Bitcoin, this will be a point that they may take substantial short positions.
The hourly chart provides a closer look at the recent retracement we have seen in Bitcoin. Breaking from the triangle pattern in Bitcoin brought price from around $6420 to a high of $6530 over the space of a few hours. Price traded in a range for most of yesterday after this rise and has now dropped to around $6450. Current trading activity seems to be forming a range around this point. A drop from here will likely meet some support at the upper trend line of the triangle and the hourly 200 EMA which is trading around the same point.
- Price action in Bitcoin is trading above the triangle pattern which has been forming since March.
- The price has retraced to $6450 since the move which brought it out of the triangle pattern to a high of $6530. Price seems to be meeting support at the daily 50 EMA.
- If the price continues to rise from here, $6750 to $6850 will be anticipated as a point of resistance.
|DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.|