Bitcoin Challenging Predictions of Testing New Lows By Holding Support
By The Crypto Basic on The Capital
The Bitcoin price extended the rally that began late on Wednesday this week.
Bitcoin price temporarily solidified around $ 6,650 before breaking out to meet the $ 6,900 resistance.
If Bitcoin does not hold the $ 6,600 support, the early support of $ 6,400 is less likely to be held.
Since the $ 7,200 price peaked at the top of the resistance, it has moved lower highs in the 4-hour period, but volume, which immediately dragged the price from $ 7,200, has faded, but when the price has dropped to $ 6,700 the volume rose again.
The CMF is above 0 and on the emergence, along with the long shadows and higher lows of the last 3 candlesticks in the 4-hour timeframe, shows that bulls are buying on the dips to support the price above $ 6,600. The reduction in volume also supports this observation.
The price is above 20 MA of the Bollinger Band indicator at $ 6,600, a point that also coincides with the ascending trend line, and at the time of writing, the 4-hour relative strength index was $ 66.
This allows retailers to see whether the downward curve flattens or begins to rise, along with an increase in purchasing volume in the shorter periods. If this does not happen, the underlying support mentioned above is likely to be retested.
Ultimately, the rallies on Wednesday and Thursday have strengthened Bitcoin’s momentum well, allowing the cryptocurrency to overcome key overhead resistances and support some.
In the daily timeframe, the price can be seen to continue to bottom out, and even if the underlying support is retested at just $ 5,800, the price is preparing to retest the resistance of $ 7,200 if a VPVR node is included high volume is present.
Once the price crosses the $ 7,200 to $ 7,400 zone, there is a volume gap that, if exploited, would cause the price to rise to $ 7,700. While this level is close to hitting a higher monthly high above $ 7,950, the moving averages of 50,100 and 200 days are all close above your head and are likely to be a challenge to overcome.
While it could take longer than expected, a move above the 100- and 200-day moving averages would signal that bitcoin has become bullish at the macro level, and continued trading above $ 8,500 would provide even stronger confirmation.
In the short term, traders can simply see if the price is above the ascending trend line and if there are still slumps as this is a sign of strength.