On the hourly analog Bitcoin Bitfinex chart, you can see the price steadily rising over the past few hours. The standard pitchfork has done a great job tracking some of the key levels for price current sitting in the lower blue channel around $6,500.
There is a rising wedge pattern that has formed between the two pink lines and that top pink resistance line and the turquoise line together form a bearish pennant. Both these patterns indicate a bearish move, so the question becomes how deep might it go.
Additionally, the candle from 7:00 am EST this morning indicate a rejection off that red down-trending long term trend line. I would expect some more candles to go up and challenge it again, however it’s time for the bulls to step up they are going to do something about bears moving into position.
The orange 55 EMA is providing decent support for now, but that may not last much longer, so I have drawn a potential target of where price may visit if the outside of the pitchfork does not hold at a round $6,420. Perhaps price may have a wick stretch down to $6,340 or go as far as $6,250 and retest that low on Wednesday, which would also converge with the bottom of the purple channel on the pitchfork.
The RSI is sitting at 51.07 in neutral territory with no major divergences, and the bullish 63 level seems to be providing some horizontal resistance there. A reset of the RSI to lower levels is needed to provide any bullish reversal indicators.
The MACD has now crossed over bearishly and begun down ticking on the histogram. It appears destined to break back below that zero bound which will also provide further momentum for the bears. The OBV is also not provide much indication either way as well, but the overall theme looks bearish over the next few hours.
I looked at the daily and weekly charts yesterday, so I am going to take a look at the 8 hour analog Bitcoin Bitfinex chart today. The orange 55 EMA line here is providing resistance around $6,565, with the purple 9 candle EMA line providing support at $6,488 as their range narrows.
Volume has been dropping predicating what could be a big move, there’s multiple levels of significant resistance with the red long term downtrend line and the black horizontal line as well. The RSI here is finding horizontal resistance around 55 and the interesting thing is the MACD lines are both above the zero bound barely at about 18 and 5.
This is just slightly bullish because the lines are so close to one another and any price movement to the downside would quickly complete a bearish crossover and send the lines bearishly back below the zero bound.
If price does manage to push upwards over the weekend, a target around $6,800 as the confluence between the medium line on the pitchfork and purple down-trending line might be a reasonable level before expecting major resistance again. Have a good weekend!
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