Author: Following our previous analysis, Bitcoin is still in the same area, around $5200, inside the ascending triangle formation (which can be seen on the following 4-hour chart).
This is what we had written on our last analysis: “From above, Bitcoin is still facing the $5200 area. After twice getting rejected, Bitcoin is getting closer to breaking up the $5200; however, the real target is the resistance area of $5300.”
The big picture hasn’t changed much: The real resistance is located around $5300 – $5350, while BTC is expected to reach its decision point in the next day or two. A breakout of the above pattern and we could easily see Bitcoin’s new highs at $5600 – $5700. Rejection – and the bears are likely to return into the main crypto stage.
Total Market Cap: $182.1 Billion
Bitcoin Market Cap: $92.6 Billion
BTC Dominance: 50.9%
Looking at the 1-day & 4-hour charts
– Support/Resistance:
From above, as mentioned, Bitcoin is now looking on the resistance area of $5300 – $5350. In case of a break-up, some resistance lies at $5500 before reaching the 2018 legendary support turned resistance line at $5700.
From below, there is a close-by resistance turned support level of $5200, along with ascending trend-line that is building the triangle (mentioned above). The next resistance area lies around $5000 – $5100. Further below lies $4800 and $4700. Far below is the 200-days moving average line of the daily chart (marked in light green) which is currently around $4550.
– Daily chart’s RSI: The RSI level found support at the 80 level, along with the long-term descending supporting trend-line. As of now, the RSI indicator looks bullish; however, Stochastic RSI oscillator had recently crossed over at the bullish territory. This might start a correction down for the next couple of days.
– The daily trading volume: The trading volume had calmed down since the Bitcoin rally of a week ago. This sometimes could predict a coming-up strong move.
– BitFinex open short positions: Following the recent sudden 20% drop in the short positions, the number had found support on the long-term 17K line. Since then it had safely climbed up to 18.7K BTC open short positions, as of now.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
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Cryptocurrency charts by TradingView.