Over the past four days and since producing the Doji candle on the 4-hour chart, Bitcoin’s price has set a beautiful series of higher lows. As mentioned in our previous analysis, Bitcoin found decent support from the mid-term ascending trend line (marked in yellow below).
This trend was ‘roofed’ by the 200-day moving average line (light green on the 4-hour chart), which was rejected twice in the past four days. However, as we write this update, Bitcoin has finally broke above the line on its way north.
Bitcoin now faces the next major resistance level of $10,800, along with the 50-day moving average line (marked in purple on the daily chart).
Total Market Cap: $278 billion
Bitcoin Market Cap: $191 billion
BTC Dominance Index: 68.7%
*Data from CoinGecko
Key Levels to Watch
Support/Resistance: Following the breakout, the current level of resistance-turned-support is the horizontal $10,550 area, along with the MA-200 as mentioned above (marked in light green on the 4-hour chart). Below that, the area of $10,200-$10,300 is the next line of support. Further below are $10,000, $9,800 (the 100-day moving average), $9,600, and $9,400 (the weekly low).
As for resistance, after $10,800 (daily MA-50) lies the $11,000-$11,200 range, which also contains the descending trend line which started forming after the 2019 high of $13,880. We expect the next resistance level to be located at $11,500-$11,600.
Daily chart’s RSI: The recent bullish move brought the RSI precisely to the 50 resistance level. This could be a significant area (along with the aforementioned resistance for Bitcoin). As mentioned above, the Stochastic RSI oscillator provided reason for optimism, as it crossed over in oversold territory and is about to enter the bullish zone.
Trading Volume: The weekend saw a very low amount of trading volume (as expected). If Bitcoin bulls want to take control of the market, today’s candle will need to be a lot higher than that of the weekend.