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Bitcoin recently made a strong rally, enough to overcome the cleavage of its double bottom at $ 3,600 to $ 3,700. This confirms that an uptrend is underway, but only if buyers can be able to keep the price above the area of interest.
The application of the Fibonacci retracement tool on the last low and high oscillation shows that levels between 38.2% and 50% cover the previous resistance that could now stand as support. If so, the bitcoin could recover up to $ 4,035 and above. This area of interest is also in line with the 100 SMA dynamic inflection point.
As for moving averages, 100 SMA is above the 200 long-term SMA to confirm that the path of least resistance is on the upside. In other words, the upward trend is more likely to gain traction rather than reverse. The gap in moving averages is also widening to reflect a rising bullish momentum, but a larger withdrawal could still test the 200 SMA dynamic support just under 61.8% of Fib to $ 3.500.
RSI is going lower to report that the sellers have control of the game and could continue pushing for further declines. However, this oscillator also approaches the oversold region to signal that sellers may soon run out. Similarly, Stochastic is approaching the oversold territory in its movement to the south, and turning higher it may signal a return to the bullish phase.
Bitcoin has done enough the recovery and market observers have blocked it on a number of factors. The first is the offer of encrypted encryption Coinbase that could increase volumes in the retail sector. The next report is that Mark Dow, the former IMF economist who opened an important short play on bitcoin after hitting his historical highs, has closed his remaining position and has led many to think he might already see a market fund.
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