In our previous price analysis, we’ve mentioned the option that Bitcoin can turn bullish for the short-term in the case of breaking up the significant 50-days moving average line on the daily chart (around the $3600 – $3620 area).
Not only that Bitcoin broke up the above, but quickly surpassed the $3700 and the $3800 – $3850 resistance levels, til encountering the $3950 resistance mark. The daily high had reached $4000 for a short moment (on Bitstamp). It was a fantastic day for the bulls, so what’s next?
Looking at the 1-day & 4-hour charts
– As mentioned, Bitcoin had completed a fabulous 2-day move. For the past hours, we notice a consolidation between the range of $3850 and $3950.
– Support and resistance levels: From above, breaking up the $3950 area, would likely to send Bitcoin to retest the $4050 resistance, before getting to the significant $4200.
– From below: Resistance turned support areas at $3800 – $3850 (along with 38.2% Fib retracement level at $3830), $3700 area (along with 61.8% Fib retracement level at $3723), and $3600 famous area (along with MA-50 of the 1-day chart).
– Looking at the daily chart’s RSI: This is a breakout! The long-term descending trend-line had been breached up nicely and sharply. The RSI hadn’t seen those high levels since July 2018.
– Following the action, the trading volume is high in green. This is a bullish sign.
– BitFinex’s open short positions: After breaking down the long-term ascending trend-line, The shorts had reached a horizontal support level around 19,000. This was also the number of shorts on November 14, 2018, just before Bitcoin broke down the significant level of $6000 (along with breaking down the bearish triangle).
The BTC Longs chart reveals closing of long positions. This reduces the thought of a market price manipulation (since it’s a healthy traders’ behavior).
As can be seen on the chart below, support holds and since encountering the line – the number of shorts slowly climbs.
BTC/USD BitStamp 4-Hour chart
BTC/USD BitStamp 1-Day chart
BTC Open Short Positions (BitFinex)
Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.