Bitcoin has broken it’s February 2018 low of $6,000 and created a new bottom till now for the current year which is seen at $5,755 (Bitfinex).
BTC is representing a gain of 5% in last 24-hours and is trading just around the level of $6,150. We had mentioned in our previous weekly analytical report that BTC will face due resistance against the $6,900 – $7,000 and is likely to test $6,000. Our mentioned levels were accurately met with BTC sinking below $6,000 from $6,750 in next 72-hours of my writing. This was a sharp $1,000 accurate drop which was approximate a ~15% fall post the analysis.
In the present scenario, thought the bearish outlook has not faded away, the positive that can be derived is – Bitcoin has not given a day close below the said crucial support of $6,000 seen in the chart above inside the blue circle.
Looking into the short-range time-frame, Bitcoin has made a reversal pattern called the “morning star” to which we will see confirmation only if Bitcoin crosses over the immediate overhead resistance of $6,360 to gain a momentum to the upper line of the descending channel.
If the above move is successful, Bitcoin will give a pause to it’s continuing downtrend and Bulls might look for a respective reversal. The current downtrend has not been invalidated, however, there has been a ray-of-hope that is seen in BTC charts.
The other factor that supports a hint to the start of a reversal in short-term is the RSI divergence. Despite the newer lows, the daily RSI index has risen from 26 to 33.
- Bitcoin looks bearish for a mid-term outlook unless the level of $8,000 is breached and closed above the same.
- In short term, Bitcoin might gain a positive momentum ONLY IF it manages to breach above its intraday resistance of $6,400. A breach above the same will gain BTC a momentum of 10% upswing.
- Bitcoin in long-term trend will ideally gain support above $5,000 and is not likely to be broken. The important level to look out for is the $5,400 which was the November 2017 low before the bull-run up to $19,891.
Traders can smartly use their skills and can refer to the technical levels above to make their own optimized trade decisions. Happy Trading!
If you missed our last report, please read here.
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