Bitcoin Bounces off $6,000 [Bitcoin Price Update 2/6/2018]

Bitcoin has bounced off $6,000 overnight and looks to move higher as it tries to recover. The 4-hour chart 34 EMA comes in just above $8,000, and rallies could pause there. The overall bias is bearish until BTCUSD can make a sustained move higher.

In mid to late January, BTCUSD sliced through the 89 SMA on the daily chart and moved quickly lower. Overnight, the price bounced off of $6,000 support. Even if a bounce on the daily chart happens, the 34 EMA, near $11,000 and falling, should cap rallies. Until the Bitcoin prices moves back above the 89 SMA, bear market pressure will still dominate.

On the 4-hour chart, the last closing candle was a long green candle with heavy volume. This came after the price bounced off of $6,000. If this rally holds, the price should rise toward its 34 EMA near $8,000 as a first stop. But until BTCUSD can close above its moving averages, and the 34 EMA moves above the 89 SMA, bearish risks are intact.

The short term relief rally is a welcome event for traders and investors, but the bear market is very likely not over.

DISCLAIMER
This post is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action. You will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives.