New Resistance Could Cap Bitcoin’s Upside Rate Potential


Bitcoin’s (BTC) bulls are having difficulties to push rates bigger, in spite of a continue to-favorable quick-phrase set-up on the specialized charts.

Bitcoin rose to a 6-day substantial of $6,580 on Monday on Bitfinex, adding credence to indications that the cryptocurrency could be in for a relief rally.

The bullish bias has strengthened further more in the past two days too, courtesy of a bullish Bollinger band breakout and a bullish crossover concerning the 5-day and 10-day shifting typical (MA). Furthermore, bitcoin refused to embrace the negative narrative on Wednesday right after the $31 million hack of South Korea’s Bithumb trade, indicating that the sellers are probably working dry.

Even with all this, although, the cryptocurrency has struggled to discover acceptance previously mentioned $6,800 in the past 72 hrs, as observed in the chart beneath.

Day by day chart

Bitcoin printed intraday highs previously mentioned $6,800 in the past 3 trading days (as per UTC), but continue to shut perfectly beneath the $6,800 mark.

The repeated failure to scale $6,800 in a convincing method forces us to contemplate the likelihood of the bears building a comeback, whilst the charts do not see that occurring although BTC is holding previously mentioned $6,550.

At push time, BTC is changing fingers at $6,730 on Bitfinex.

4-hour chart

The chart shows BTC has developed a rising wedge –  a bearish continuation pattern. A crack beneath $6,550 (rising wedge assist and 50MA assist) would place the bears again in the driver’s seat and permit a drop to $6,000.

A drop beneath $6,550 would also push the relative energy index (RSI) beneath the ascending trendline, further more strengthening the bear case.

View

  • The rapid outlook remains bullish as extended as bitcoin is holding previously mentioned $6,550.
  • On the bigger facet, stiff resistance is noted at $6,943 (100-candle MA on 4-hour chart) and $7,000 (psychological hurdle).
  • A downside crack of the rising wedge pattern (beneath $6,550) would open the doors to $6,000.
  • A day-to-day close (as per UTC) beneath $6,000 would expose the up coming important psychological assist of $5,000.

Bitcoin picture by using Shutterstock

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