A quick update, following yesterday’s price analysis: “the $6400 range seems to be holding and we might see a little correction to re-test the 50 day moving average from below, this time as resistance. There also ($6400) lies the 38.2% Fibonacci retracement.”
The positive correction exactly encountered the 50 day moving average (the purple line) before turning down again.
Optimism isn’t back yet, unless the moving average is broken, which now lies around the $6530 price level, and then breaks the $6800 resistance level again.
As a reminder, the situation can change any minute regarding the SEC’s decision on the ETF.
- If Bitcoin breaks below the $6400 level, then the next resistance level to be tested is the ascending trend-line around $6350. The next major support areas are at $6100 and $6000.
- As a reminder: To declare an end to the long-term bear market, Bitcoin will need to create a higher low and break past $7300 (the last major high on the weekly chart), now it seems less likely.
- From the bull side Bitcoin will need to break past $6500 (the 50 day MA), $6670 (the 200 day MA along with the ascending trend-line) and as already mentioned – $6800
- Bitcoin short positions on BitFinex are low relative to last week.
- Trading volume is relatively low. This might indicate traders waiting for a significant movement to any side.