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Homepage / News May 31, 2018 62 views

Going Up? Bitcoin Value Sets Sights on New Resistance

Going Up? Bitcoin Price Sets Sights on New Resistance

Bitcoin (BTC) is functioning its way by means of the essential provide zone above $7,500 and could test resistance at $7,870 in the next 24 hours, the technical charts indicate.

The cryptocurrency looked primed for a corrective rally yesterday, having created a bullish outdoors-day candle&nbspon Tuesday. However, the bulls had a challenging time absorbing supply around 50-candle moving typical (MA) on the four-hour chart, located yesterday at $7,550.

The repeated failure to beat the moving average hurdle ended in a downside break of the diamond pattern. The subsequent sell-off ran out of steam at $7,270, and led to a convincing move above the 50-candle MA, noticed right now at $7,441.

As of writing, BTC is altering hands at $7,535 on Bitfinex, up .six % more than 24 hours, and looks set to test the falling trendline resistance positioned at $7,870.

four-hour chart

The recovery from $7,270 to $7,570 has established a larger low (bullish pattern), which adds credence to Tuesday’s bullish outside-day candle and bullish cost-relative strength index (RSI) divergence.

Hence, BTC could test supply around $7,870 &ndash resistance of trendline sloping downwards from the Might 6 high and Might 21 high.

It also implies the cryptocurrency will most likely peep above the all-crucial 50-week MA, at the moment situated at $7,711. Even so, only a weekly close (Sunday’s close as per UTC) above that level would signal bearish invalidation.

Weekly chart

As seen in the chart above, the final weekly candle had closed below the 50-week MA for the 1st time because October 2015, in theory indicating the end of the extended-term bull run.

Regardless of the bullish set up, there is merit in being cautious as the key moving averages &ndash 50, 100 and 200 &ndash on the four-hour chart are also biased to the bears, as is the ten-day MA.

View

  • Bitcoin will likely soon rise to $7,870 (descending trendline hurdle) in the next 24 hours. A higher-volume break above that level would enable a re-test of the 50-day moving typical, at present situated at $8,522.
  • Bearish situation: The moving averages are preserving a bearish bias, so a drop to $six,900 could be on the cards if the bulls fail to capitalize on the break above $7,500 and the value drops below $7,270 in the next 24 hours.

Archery target image via Shutterstock

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Published at Thu, 31 Could 2018 09:20:49 +0000

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