Bitcoin gave the inverted “Bart Simpson” candlestick formation yesterday and some traders on Reddit were expecting a bounce. Mentioned in the previous report, there was a clear divergence between the price and momentum, and this morning we can see the price playing catch up. The gap left from the previous sell off got filled very fast. Taking a quick look at the 1hr BTCUSD chart:
The sellers clearly ran out of steam and the first good buying pressure sent prices pushing through $6300 – $6400. RSI is pushing higher and I will expect a correction in this range before testing the $6600 support level. Should momentum push us past $6600, I will look for a consolidation above this zone before feeling completely safe in a long trade.
Like mentioned in previous reports, $6400 – $6600 is strong resistance at this point and the bulls will have to keep up the buying pressure in order to test the longer term resistance at $7k.
Support on the shorter term should be solid above $6300 – $6400, and I expect the dips to get bought up swiftly should we see those prices again.
It is a positive sign to see some good buying volume on the crypto market after the recent stock market crash that sent a lot of traders tumbling, and left portfolios dwindling. I am not going to pop the champagne yet, but sure got the bottles ready! Safe trades.
- This reply was modified 4 months ago by CheesePuff.