2018-11-28 12:23 |
Bitcoin is back trading at the key $4000 level. The past weekend resulted in extremely bearish market movements where Bitcoin broke below this level and formed a low around $3500.
The price has since jumped after a bullish divergence took place between the price and daily RSI. The bullish divergence resulted in the price continuing to decrease, forming a lower low despite the daily RSI having formed a higher high. This is a typical reversal pattern. Traders were likely cautious to take long positions with this pattern given the extremely bearish market conditions taking place recently.
Traders who did take a long position would have capitalized effectively on the pattern forming. The MACD is beginning to converge back towards the centerline showing a shifting in momentum back towards buyers.
Bitcoin Daily Chart – Source: Tradingview.comThe $4000 point is now coming into play as resistance with the price rise halting at this point. The hourly chart shows how price action reacted at the level in closer detail. Price briefly rose above, near $4100, but quickly retraced back below. Price is currently trading around $3970.
Price is now starting to trade in a range which may precede another significant move upward. If the next move is substantial and to the upside, a bull flag pattern will be successfully executed on the hourly. Some resistance would be expected around the hourly 200 EMA at $4200 and also $4600 if upward movement can continue.
Bitcoin Hourly Chart – Source: Tradingview.com Key Takeaways: Bitcoin rises from a low around $3500 to the $4000 level after a bullish divergence formed between price and daily RSI The daily MACD is beginning to converge to the centerline showing a shift in momentum towards the buyers The hourly 200 EMA and $4600 will be expected as resistance points if the upward movements can continue. 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.Bullish Divergence for Bitcoin [BTC] Precedes Price Jump was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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