Bitcoin (BTC) has had a good week, putting in a low in its local downtrend and a surge up to follow. This surge can translate into something greater, but that hasn’t happened yet.
On the daily chart, we first see that Bitcoin has closed (just) above the 55 EMA. This is a healthy accomplishment for the BTC chart, and we see the EMA configuration starting to trend toward bullish (that is, smallest EMA on top). It was held, though, at the 21 EMA, and we might need to see the 8 retested today.
Volume surged in yesterday, but there doesn’t seem to be much follow through yet today. As we discussed yesterday, Bitcoin still has a lot of work to do in order to clear out the MTF downtrend – and until it does, it’s still in a downtrend. We should see the 21 EMA taken in the next few days, or Bitcoin will probably resume that trend.
Moving to the 4-hour, we see that Bitcoin has held out the night between the 8 EMA and the resistance zone at around $9,150, with definite market awareness at the 8. As we discussed yesterday, we basically need to see another leg up to start considering the MTF downtrend challenged.
The RSI is strong here, growing with price on the second leg up. The histogram also looks like it may continue a bullish expansion up – although lately these profiles have been switching rapidly.
Finally, on the 3-day, we can note that Bitcoin has regained a critical inflection level at about $9,100. This level has served as an important hurdle in the last nine or ten months, both to the upside and the downside.
BTC chart by TradingView
The prognosis remains the same essentially, since yesterday. The MTF downtrend is being pressured, but it’s not yet cracking. Watch this space
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