The long-term consolidation of Bitcoin from the past weeks is coming to an end soon? Two significant signs indicate on a coming up movement: Bollinger bands are very tight, along with 200 and 50 days moving average lines that have recently crossed each other.
Over the weekend Bitcoin had re-tested the upper line of the “channel” reaching a high of $6740, but didn’t have enough buying power to stay there.
- Bitcoin is on top the 50 days moving average (the purple line on the chart), but still facing the tough resistance zone of $6600.
- Volume is still decreasing over the last days (maybe typically to weekends), this supports the option of a significant Bitcoin move ahead.
- From the bull side: Resistance area is at $6720 – $6800: the $6800 double top, along with long-term descending trend-line at around $6720 and upper trend-line of the ascending channel at $6760. This creates a strong resistance area around the above.
- RSI levels are at their low levels; Stochastic RSI had crossed at the low RSI levels. Hence the market is in good shape to move up according to RSI.
- Bitcoin short positions on BitFinex didn’t change much over the past two days.