BITCOIN PRICE ANALYSIS: BTC BULLS NEED TO BREAK KEY 50MA RESISTANCE

Story by: SMITH

After a steep decline in price action, Bitcoin finally finds some short-term relief from the bearish pressure that has seen price levels drop from $9,600 to $7,600 within a few days.

BITCOIN 4-HOUR PRICE ANALYSIS

On the 4 hour XBT/USD chart, we can see that price levels have rapidly declined resulting in Bitcoin dropping $2,000 within the space of a few days. Since then, short-term price action has formed a wedge that has clearly broken to the upside. This has resulted in price levels attempting to form a new uptrend. Buying volume has yet to flood back into the market and will be required in order to sustain any form of a new uptrend.

Currently, the market price for Bitcoin and the most recent 4-hour candle is touching the 50 MA at $8,440. Typically when new uptrends are beginning to form, traders will use the 50 MA as a pivot resistance point to gauge the strength of the trend. When price levels rise above the 50 MA this is a sign of sustainability and will likely result in a continuation of the newly formed trend.

Volume has clearly made three descending peaks since the 25th of September yet price RSI and price levels have been rising since creating a bottom at $7,700 mentioned in my previous analysis on Bitcoin. This could be a sign that a bullish divergence could play out over the coming days.

30-MINUTE PRICE ANALYSIS

On the 30 minute chart, we begin to develop a clearer picture of how short-term price action has been unfolding prior to the breakout of the wedge mentioned in the 4-hour analysis above. Bitcoin price action breached through the wedge resistance around $8,050 and has since risen $400. Both the 50 MA and 200 EMA have crossed over one another in a bullish fashion since the breakout which is a very common indicator of a new short-term bullish trend forming.

POC (Point of Control) at $8,013 sits very close to the breakout point mentioned above and has clearly been breached in a bullish fashion. This is another strong indication of a bullish trend forming. Bullish volume has begun to taper off since the large spikes seen around the breakout point. Volume will need to be monitored as a continuation of low volume with selling spikes will disrupt any chances of a new bullish short-term trend forming over the coming days.

Original story: https://bitcoinist.com/bitcoin-price-analysis-btc-bulls-need-to-break-key-50ma-resistance/

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