In the week after the biggest move since June, we bring you Bitcoin rally technical analysis on a 1-hour BTC/USD Coinbase chart. There are a lot of indicators flashing at the moment so, without any more blah-blah, let’s get straight into it.
Friday has brought us a skyrocketing of epic proportions as Bitcoin gained 37.59% in valuation. Moreover, it happened inside 10 hours. Exchanges were buzzing and servers were stretched thin. During that time, BTC went from $7,600 to a stunning $10,500, marking the month-long high.
As the RSI shows, a heavy overbuying session triggered the wave followed by a good old FOMO, brilliantly represented by the surge in Bakkt’s daily trading volume. The 37% rise in 10 hours, no matter how big it seems, isn’t the biggest we’ve seen to date. Therefore, we should always leave room for more.
Positive readings on bu/sell count, volume and pressure best depict the stance of the market during the skyrocketing hours. When we look at it with a two-days distance, it is quite obvious that bears didn’t stand a chance. Each delta indicator went through the roof, showing a blatant example of coordination.
So, what now?
Bitcoin Rally aftermath technical analysis
As it is clearly visible in the chart above, there is a level that Bitcoin established as a current pivotal point that we have to closely watch. It is the latest support that may range from $8,900 and $9,000. The same chart reveals that the buy/sell volume is clearly on the side of sellers, which is a clear example of traders taking profits.
On the other hand, it is worth taking notice that the aforementioned support level overlaps with a 50% decline from the latest high according to the Fibonacci retracement.
In the meantime, the Bollinger Bands indicator explains the current indecisiveness. The price is fluctuating between the two extremes, therefore, all short-term swing traders have to be careful when taking positions. Watch closely for short-term trend changes, and act only upon confirmations of swings.
It is quite possible for Bitcoin to lose some of its new-found gains due to all the sellers currently dumping BTC. One of the possible levels is 0.618 on the Fibonacci retracement at $8,600. That is the crucial level where it will finally be revealed if Bitcoin regained some of its 2017 strength or this rally was just a short-term market manipulation.
Moreover, if BTC breaks both $9,000 and $8,600 levels, the fall towards $7,400 will be inevitable. Only this time with a much lower level of trust than before.
Bitcoin technical analysis – visible candlestick patterns
Regarding the current situation, there are a few visible candlestick patterns that may be signs of some future movements.
- Engulfing pattern – 6hr BTC/USD chart – bearish
- Belt-hold – 1hr BTC/USD chart – bearish
- High wave – 2hr BTC/USD chart – indecisive
- Hikkake with possible bullish setting forming – 4hr BTC/USD chart
Our technical analysis is done with the professional cryptocurrency trader’s tool – Coinalyze.
You should look elsewhere for investment advice since this is not it. Even if it looks like it. Cryptocurrencies are known to be extremely volatile and risky speculations. Always do your own research. Consider to consult an investment professional prior to investing your money.