The Bitcoin market has been quiet the last week as some sources say it was even less volatile than Amazon stocks. This is normal as traders are unsure if the next big move will be a bullish or bearish one.
Sentiment on the market is quite bullish with even Elon Musk getting in on the “Buy Bitcoin” tweets, as well as mentioning that The Boring Company will be accepting BTC, ETH and BCH. Taking a look at the 1hr candle chart to get an idea of what to expect.
Short term resistance in my opinion is between $6400 – $6500, and the bulls will have to buy up the books in order to consolidate above this zone. The important thing to note is that the price action has broken through my bearish trend line, trading above the MA, and RSI popped above 50, these are all bullish signals in my view and I have alerts set for possible breakout zone.
What to look out for, should the rsi fail to consolidate above 50, there is a big chance that prices could drop below the MA and rejoin the previous bearish channel. This happens often and it is quite normal for a resistance zone to get tested multiple times before the eventual breakout.
There is always a chance for a breakout to turn into a fake-out. Keep an eye on the support zone at $6400 – $6450, should prices consolidate below here, we will experience further correction before we get more gains on the market. Safe trades, feel free to discuss these trade ideas with us in Discord.