Summary: Bitcoin breaks through $58K resistance, which along with strong momentum – bullish MACD crossover and RSI (over 50) suggest BTC could be in for more gains. Would like to see more volume – OBV indicator.
Watch 3 min video of this technical analysis.
You can find more curated charts like this here.
Trend. Bitcoin is in a Strong Uptrend across all time horizons: Short-, Medium- and Long-Term. The Uptrend is clear when observing price making Higher Highs and Higher Lows, textbook definition of an uptrend. After a 3 week consolidation period, price has rebounded and broken the resistance level of $58K and made new ATH.
Momentum turned bullish recently (MACD Line is above MACD Signal Line), which suggests we could see continued strength in price action near term. RSI remains above 50 (bullish) but not overbought (under 70).
OBV (On Balance Volume), is rising again, indicating that volume on Up days exceeds volume on Down days. Hence, demand from buyers exceeds supply from sellers. However, OBV has not reached new highs, which could put the longevity of the recent upswing in price in question – price rising on low volume – not convincing. Support and Resistance. Nearest Support Zone is $50K while the most recent Resistance at $58K was just cleared.
Trade setup: Trend and Swing traders should be onboard of this uptrend, at least as long as MACD momentum is in a bullish crossover. Even the conservative trend traders got their trend confirmation when price broke through $58K resistance. Swing traders could watch oscillators like RSI, CCI, Williams to gauge when BTC reaches overbought levels and potential signs of pullback.
Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice. There are risks associated with investing in cryptocurrencies. Loss of principal is possible.
0 Comments
Leave a comment