Over the past days, Bitcoin has had a steady rise, back to the good old $6400 range from October. Yesterday we saw a beautiful green candle with a peak of $6470 (Bitstamp), but unfortunately not yet convincing trading volume.
What is nice to notice, is a long-term bullish signal: The 1-day RSI indicator had breached a descending line started forming around July. This cross, which is marked on the following chart, and might support the fact that Bitcoin had seen the bottom for this round.
Now let’s get back to our continues analysis.
The 4-Hours chart:
- Since breaking up the descending trend-line (marked in light blue), Bitcoin is encountering (again) the tough resistance zone which includes the three moving averages along with $6400 resistance level. Currently, Bitcoin gets supported by the significant MA-200 line at the $6400 mark.
- The next major resistance area lies at $6500 – $6530. It has been almost a month since Bitcoin’s price was over $6500.
- From the bear side, close support levels lie at $6370 (MA-100), $6330 (MA-50). Major support lies at $6250.
- BitFinex has now 21.8K BTC open short positions. The number had reduced significantly (around 45%) over the past 24 hours.
- As a reminder: The market is still bearish. I would consider changing my mind, if and only Bitcoin will create a higher-low and breaking above $6500.