Bitcoin’s (BTC) bulls have staged a defense soon after almost a month of losses, but a quick-term bullish trend reversal is not yet confirmed, the technical charts indicate.
As of writing, the cryptocurrency is up 5 % at $7,487 on Bitfinex, having clocked a 4-day high of $7,560 earlier these days.
A minor corrective rally had been expected, courtesy of a bullish price tag-relative strength index divergence in the short duration charts observed over the final two days.
Additional, the resulting bullish outdoors-day candle engulfed the price tag action noticed on Monday and Tuesday, and has neutralized the quick bearish outlook.
As the name suggests, the bullish outside-day indicates a bearish-to-bullish trend change. Nevertheless, analysts and traders typically wait for confirmation &ndash optimistic follow-by means of ahead of calling a reversal.
So, a quick-term bullish trend reversal would be confirmed if bitcoin takes out the descending (bearish) ten-day moving average (MA) hurdle in a convincing manner. At the moment, the ten-day MA is positioned at $7,562 and is capping the upside in rates, as seen in the chart above.
Meanwhile, the 50-candle MA hurdle in the 4-hour chart under is also proving a tough nut to crack.
A high volume break above the 50-candle MA of $7,520 could see bitcoin attack the descending trendline hurdle, at the moment located at $7,930.
That stated, prices will likely revisit $7,100 if bulls are unable to cross the important moving average hurdle in the next few hours.
The chart also shows the major moving averages (50,one hundred and 200) are trending south, a lingering bearish setup. So, a convincing break above the 50-candle MA will be less difficult said than done.
Bull statue image by means of Shutterstock
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Published at Wed, 30 May 2018 ten:00:12 +0000