Bitcoin [BTC/USD] Technical Analysis: Price to see a short term recovery after bearish momentum
Bitcoin [BTC]’s price seems headed for a general upwards trend recently, with the coin jumping on the hype train of the Bitcoin Cash [BCH] price hike to pull itself from the bear’s clutches. While the coin seems ready to test higher gains, the market may have more in store for HODLers than they expect.
There is a visible uptrend in price from the $6220 – $6375 – $6445 and is complemented by a similar uptrend from $6330 – $6380 – $6530. This forms a channel, indicating a possible breakout in the price. The price is set to bounce off the lower uptrend for a short bullish rally.
A downtrend is also present from $6530 – $6510 – $6500. Support levels are present at $6390 and $6220, with a resistance set at $6530.
The MACD is demonstrating a bearish crossover and breaking downwards.
The Stochastic RSI has dipped into the oversold zone and is demonstrating a bullish crossover for the price to continue moving upwards.
The Parabolic SAR is also bearish, as seen by the presence of the dots above the candlesticks.
A support uptrend is seen from $6182 – $6270 – $6450, with the dominant downtrend seen from $9800 – $8390 – $6500. Resistance levels are seen at $6750, $7360, $8385 and $9800, while supports are set at $5850 and $6145.
The RSI is showing that buying pressure has reduced since yesterday, with a slight decline seen in the price.
The Relative Vigor Index is also demonstrating a bullish crossover.
The Bollinger Bands are closing together, with market volatility decreasing over the past few days.
The price might see a short-lived-break upwards and break free of the bear’s shackles. However, it might see a resistance at $6530, as the current uptrend keeps the price above $6390.
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