2018-7-18 14:49 |
After $6850 acting as a significant resistance level since November of last year, price action yesterday blasted through this level and Bitcoin is now trading around the $7400 price.
As reported in yesterday’s post here, many of the signs were pointing towards further upward movement, but significant resistance was expected at the $6850 level. Not only has $6850 been an important level of both support and resistance, but the daily 50EMA was also around this point and expected to act as additional resistance. Price blasted through these levels over the course of just a few hours and is now trading near the 100EMA, which could be a new resistance level. With the recent sharp moves upwards, traders looking to go short should be cautious of prior levels of resistance.
In the longer term view, this recent upward movement breaks down the pattern of lower lows and lower highs which we have seen since January. This carries a lot of weight as swing traders and position traders who are studying longer terms charts will now have more bias to trade along with the new pattern of higher highs and higher lows.
A lot of trading activity will be expected if price action can reach the $7850 point, as this was a previous lower high in June and some traders will be looking to trade a breakout, while other bigger players might be looking for liquidity to take substantial short positions at an attractive price.
Bitcoin Daily ChartThe hourly chart tells the tale of Bitcoins price action yesterday. We have seen a move up from around $6700 to $7400 in the space of just a few hours representing around a 10% gain. Traders who had short orders at the $6850 mark were immediately way offside in their trades, and many would have been forced to exit, further pushing up the price. Price action is currently trading sideways on low volume as it tends to do after a significant directional move such as yesterdays, but many signs still point to further upward movements. Higher highs and higher lows have been forming in both price and RSI.
Bitcoin Hourly Chart Key Takeaways: Price action blasted through $6850 level yesterday with a 10% gain over the space of just a few hours. If the price drops back down, $6850 should be a key area for support Longer term pattern of lower lows and lower highs is after breaking down which could be a key catalyst in changing the outlook and sentiment of a lot of traders Price action and RSI forming higher highs and higher lows on the hourly $7850 is an area of importance and lot of trading activity is to be expected here DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Bitcoin Price Analysis – Bitcoin Blasts Through Prior Resistance and Trades Above $7k was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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