Bitcoin on the rise! Bulls firmly take control.
Bitcoin has seen a 15% recovery, hovering around the $7,400 mark, up from the 54-day low at $6,425 on April's fools day! RSI (Relative- Strength Index) has turned to the upside as we could see further growth.
However, the bulls job is only half done due to Bitcoin still being stuck in a falling channel which seems hard to break the upper path of resistance. If we see a clear break above $7,800 and we managed to complete a candle close at this price, then this could likely confirm a bullish trend reversal and prevent another sell off to the $6,000 mark where strong support is placed.
Daily chart
A daily close above the falling channel resistance would signal a short-term bullish trend reversal this would the test the supply zone where we face some choppiness ahead leading up to December 17 and January 6th highs.The falling channel resistance is lined up at $7,900 and is seen sloping downwards to $7,800 by tomorrow. A move above that level would lift the RSI above the descending trendline, which would bring in more technical buyers into the market.
The 4-hour chart below shows scope for a rally to $7,800-$7,900 over the next 24-48 hours.
4-hour chart
With a bullish divergence on the RSI indicator with a shaky look break above the downwards trend line, were could see another rally of roughly 400 dollars before we see a minor pullback.
On the other hand, if we don't see Bitcoin rise and maintain its position above the descending trend line over the next few days then we could see another sell off to the November lows of $6,000.
Weekly Chart
BTC has defended the 50MA, yet the outlook still looks bearish. RSI is still seen facing and indicating towards another sell off. However, a move above $11,700 could indicate a fresh new bullish run and up to all time highs. Furthermore, we may need a series of fresh new positive fundamental data to drive off the FUD and attract new investors into the market and increase confidence to increase position sizes for current investors.
Credit: Coindesk
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