Bitcoin is working hard to overtake the $7,300 mark. However, it’s the holding aspect that has proven problematic.
BITCOIN PRICE MARKET OVERVIEW
Bitcoin continues to reject at $7,300 even though it has staged a few inspiring pops above the $7,300 resistance. After a nearly 27% gain over the past two weeks, cooling off and consolidation isare expected. The pattern of higher lows has consistently been re-established after each pullback from $7,300. Add to this the fact that there is a range of other positive signs which show BTC is well situated at the moment.
4-HOUR CHART
The weekly MACD (not pictured here) shows a bullish cross appearing on August 26th, while the 20-MA rises above all the longer term moving averages on the 4hr chart. The 100-MA recently crossed above the 200-MA — simply following the movement of the 5 and 10-hour EMA along with the ups and downs of the Stoch and RSI have provided easy trading opportunities for day traders.
Bulls have shown some signs of exhaustion as a closer look at the rejected pops above $7,300 shows that a series of lower highs, as well as the occasional higher volume spike above $7,320, is quickly rejected. This plunges BTC to the support zone around $7,270 to $7,250.
BTC now trades outside of the ascending channel. As shown by #1 and #2 on the 4-hour chart, each rejection at or above $7,300 has seen BTC return to $7,255 and $7,234. These have proven to be fairly reliable supports, but a move below $7,255 places BTC. This lies outside of the ascending channel, and $7,234 below the second ascending trendline.
LOOKING AHEAD
In the event of a pullback, BTC has consistently found support at $7,250 and $7,332. $7,200 – $7,190 follow close by.
The outlook for BTC remains positive. Still, the cryptocurrency needs to quickly surpass, and maintain control over, the $7,300 resistance. This would place BTC back into the ascending channel.
Trade sensibly!
[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]
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Images courtesy of Shutterstock, Tradingview.com.Tradingview.com.