Bitcoin is expected to rise more despite being in bearish trend
June 20, 2018 6:02 am,
Bitcoin is expected to rise more despite being in bearish trend. The leading cryptocurrency Bitcoin unexpectedly picked up a bid around $6,450 at 16:00 UTC yesterday, and Bitcoin rose to to $6,850 – the highest level since June 12.
The $400 rally may have trapped a few bears on the wrong side of the market, given the pennant breakdown on the 4-hour chart had called for a drop to $6,000.
Yesterday’s gravity-defying price action in Bitcoin(BTC) has boosted the odds of a rally to $7,024 (23.6 percent Fibonacci retracement of the sell-off from $9,990 to $6,108). However, the long-run outlook remains bearish for Bitcoin now.
At press time, Bitcoin is changing hands at $6,700 on Bitfinex.
Trading volume also picked up, adding credence to the bullish move. Meanwhile, the cryptocurrency has also found acceptance above the moving average (MA) and the relative strength index (RSI) is biased bullish above.
So, BTC will likely clear the immediate resistance at $6,736 and test supply around $7,024 (23.6 percent Fibonacci retracement of the drop from $9,990 to $6,108) in the next 24 hours.
It’s worth noting that the descending (bearish) moving average(MA) is located at $7,045, marking a key resistance level for the bulls.
The positive Bollinger band setup also validates the argument put forward by the bullish price-relative strength index (RSI) divergence last week that the cryptocurrency has found a temporary low at around $6,100.
BTC closed above the 10-day MA yesterday, invalidating the immediate bearish outlook. It also created a bullish outside-day candle on Monday (price action engulfed Sunday’s high and low) – that is, the day began on a pessimistic note, but ended optimistically. Thus, the probability that the corrective rally will gather traction is high. Bitcoin(BTC) looks set to take out immediate resistance at $6,736 and rally towards $7,024 (23.6 percent Fibonacci retracement of the drop from $9,990 to $6,108).