Bitcoin continues to provide its followers with pleasant surprises, and today’s move above the $7,100 resistance could open the door for gains to $7,500.
Bitcoin Price Market Overview
This morning Bitcoin traders were greeted with a pleasant weekend surprise…
No, not that type of surprise. Well, at least not for us at Bitcoinist as we are furiously working around the clock to bring you quality breaking news.
Anyhow, Bitcoin finally broke through the $7,100 resistance with gusto before taking a quick breath at $7,262. In the lead up to today’s upside move, BTC [coin_price] pulled off a high volume spike from the key support at $6,815 where BTC continuously was rejected slightly above $7,100. Sentiment wise and from a technical standpoint, the last 3 weeks have seen BTC approach what appears to be a turning point and today’s move above a key resistance provides BTC with a much-needed bump in momentum — and further confirmation that Bitcoin may have reached a final bottom and be on the path to a turnaround.
4-Hour Chart
In spite of the occasional pullback BTC [coin_price] has continued to post a pattern of higher lows on the 4-hour and daily charts Both the weekly and monthly close are encouraging. There is now a new higher low at $6,970 and, as expected, a move above $7,128 has helped bulls send the message that they are in control of BTC price action. The general outlook is overwhelmingly bullish as the 55 exponential moving average (EMA) has shot above the 200 MA, while the 100 is on the verge of crossing above the 200-MA.
Yesterday and today’s move also saw the 5-EMA move above the 10-EMA. A bullish cross of the Stoch happened on BTCs pop from $6,815 yesterday, and again as BTC lifted off from $6,918. Looking for ultra-low buy and sell volume and constriction within the 1-hour and 4-hour Bollinger Band indicator has proven to be a fairly consistent method for timing BTC rallies over the past 3 weeks and both the 4-hour and 1-hour chart show BTC continuing to push above the upper Bollinger band arm.
It appears that $7,200 will function as a short-term resistance and move above this point will open the door for a run to $7,350 and $7,500.
1-Hour Chart
Looking Ahead
In the event of a pullback, BTC [coin_price] has soft support at $7,090, $7,050, $7,030. There are strong supports at $6,988 and $6,905 which both align at the 61.8% and 50% Fib retracement level(s).
Similar to this week’s earlier drop from $7,142 to $6,800, a pullback and some consolidation could occur as BTC reorganizes in order to have a go at $7,200.
Keep an eye on the 5 and 10-EMA along with the RSI as it inches deeper into overbought territory.
Aggressive traders could consider buying on BTC’s current strength while placing a stop loss sell order at one of the softer supports near $7,090. More conservative traders could wait for a pullback to the stronger supports and buy on the dips.
Happy trades everyone!
[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.]
Where do you think Bitcoin price will go this weekend? Let us know in the comments below!
Images courtesy of Shutterstock, Tradingview.com.