After the unusual behavior Bitcoin had gone through (going down to $6100 and skyrocketing to $6550 in 1.5 hours), we received a crypto rally over the past day. The rally was led by Ripple, surging almost 100% to surpass Ethereum, on its way to being the second largest crypto on the market cap table.
Back to Bitcoin: A crypto rally is not possible without Bitcoin joining the party: BTC broke the $6400 mark, after a couple of hours inside the range between the two major 50 (yellow line) and 200 (purple line) moving averages, it was enough to break up the $6600 along with the 200 days moving average. The current rally had reached the resistance level at $6800, from there, the last hours carried a correction back to re-test the 200 days MA level.
- Bitcoin looks good, as long as it keeps above the $6600 mark (MA-200 days).
- Next resistance levels lie at $6800 ,$7000 – $7100 (long term descending trend-line), $7200 – $7300.
- To declare on end to the long bear market, Bitcoin will need to create a higher low and break up $7300 (the last major high on the weekly chart).
- From the bear side, $6600 and $6400 are now resistance-turned support levels. $6470 is also a possible support level (50 days moving average).
- Looking at the 4 hour chart, the Stochastic RSI indicator is still very high and crossed down. The market is in its overbought zone.
- Trading volume, for the first time after long, carries a decent amount of green candles. OBV also indicates that – money is going into the markets.