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Homepage / News May 30, 2018 34 views

Bitcoin Fights Back, But Too Early to Call Bull Reversal

Bitcoin Fights Back, But Too Early to Call Bull Reversal

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.

Everyday chart

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.

4-hour chart

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&nbspsaid than done.

View

  • The instant outlook has been neutralized, but only a convincing move above the 10-day MA of $7,562 would add credence to yesterday’s bullish outdoors-day candle and signal a short-term bullish reversal. In such a case, BTC will most likely test the descending trendline hurdle, now observed at $7,930.
  • The overall bias remains bearish as extended as the falling trendline hurdle remains intact
  • Repeated rejection at the 50-candle MA resistance in 4-hour chart could yield a pullback to $7,100&ndash$7,000.
  • A break beneath $6,900 would open up downside towards $five,000, while a move above the recent higher of $9,990 would revive the long-run bullish outlook.

Bull statue image by means of Shutterstock

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Published at Wed, 30 May 2018 ten:00:12 +0000

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