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.
Now what?
- 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.
BTC/USD BitFinex 4 Hours chart
Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.
SPECIAL OFFER (Sponsored)
LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!
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.
