Bitcoin has been making savage moves in recent days and touched $7430 price tag (on Bitfinex) yesterday. Now, it is trading above $7200 but it looks like BTC loosing some steam now. Although, crypto is volatile and anything can happen anytime but still Technical Analysis have proved to be highly reliable in past days and that's why we would analyse Bitcoin's Chart for further potential BTC movements.
So, let's have a look at the chart:
As we can see in the chart, Bitcoin is currently trading over $7200 and looks pretty Bullish as of now. It has a clear resistance at $7435 (on Bitfinex) and $7140 is acting like a great support in recent few hours. Until Bitcoin breaks down $7140 with volume and our 4-hr candle closes below $7140, it would be hard to say that Bitcoin is going inot Bears Territory.
So, Has Bitcoin topped out at $7400?
Well, very likely it has but looking at the Bullish outlook it may have some steam left for another leg up.
- So, If Bitcoin goes Bullish from here, the first resistance it would get will be $7430, and then $7500. Passing all two resistances will give straight way to Bitcoin to reach $7700 as it is next solid resistance level.
- If Bitcoin goes Bearish from here, first level of support would be $7140, and breaking this support may cause a decent sell-off in Bitcoin and we could expect price to come to $6800, the next solid support level.
- Although, we can clearly see Bearish divergence in RSI which indicates that Bitcoin may very likely got down than go up.
- Volume is decent in the market, not very high or very low, signalling an uncertainty in the market.
So, use tight stop loss for each of your trade.
Thanks for reading ..!!