After the unusual behavior Bitcoin has gone through (going down to $6100 and then skyrocketing to $6550 in 1.5 hours), we have now seen a crypto rally over the past day. The rally was led by Ripple, surging almost 100% surpassing Ethereum, on its way to becoming the second largest crypto in terms of market cap.
Back to Bitcoin: A crypto rally is not possible without Bitcoin joining the party: BTC broke the $6400 mark after a couple of hours inside the range between the two major 50 (yellow line) and 200 (purple line) day moving averages, it was enough to break the $6600 resistance level, as well as the 200 day, moving average. The current rally reached the $6800 resistance level and from there, a few hours later carried a correction back to re-test the 200 day MA level.
- Bitcoin looks good, as long as it keeps above the $6600 mark (MA-200 day).
- The next resistance levels lie at $ 6800, $7000 – $7100 (long-term descending trend-line) and then $7200 – $7300.
- To declare an end to the long bear market, Bitcoin will need to create a higher low and break past $7300 (the last major high on the weekly chart).
- From the bear side, $6400 and $6600 are now resistance-turned support levels. $6470 is also a possible support level, which is the 50-day moving average.
- Looking at the 4-hour chart, the Stochastic RSI indicator is still very high and crossing down. The market is in its overbought zone.
- Trading volume, for the first time in a while, carries a decent amount of green candles. The OBV also indicates that money is going into the markets.