Bitcoin remains on the upside, and intends to visit the maximum of October 2019, located at USD 10,350.
Although the bears have managed to take control of the market structures, in small times such as 1 hour and 4 hours, the strength of these does not seem enough to totally scare away the bulls; On the contrary, it is quite probable that important purchases are encouraged, while the price seeks to visit nearby stands.
What we see today as a bearish movement, is just a necessary setback, caused by the resistance zone created after the last fall of 2019, which led to the price towards USD 6,500.
To understand the current situation, and forecast future movements, let’s go to the Bitcoin vs. US Dollar chart to perform a detailed technical analysis:
From the weekly candlestick chart, we can see the importance of the area in which the price was halted in recent hours.
The price zone included USD 9,950 and USD 10,350 was the one that caused the start of strong sales throughout the fourth quarter of 2019.
Today we see how it is reached again, and respected; however, the prevailing control remains bullish, so it is quite unlikely that it will be able to cause a very sharp price drop.
From this same time frame we observe quite clearly, the break in the downtrend line that locked the price during the last 6 months of last year.
The moving averages EMA of 8 and SMA of 18 are kept upward, and quite far from the price, so it is possible that a setback is able to look for them as dynamic supports.
The RSI remains bullish, due to its location above level 50, thus supporting all other positive signals visits from this time frame.
It is necessary to understand that an analysis from the weekly candlestick chart will help us understand the trend in the medium term, the reaction zones, and with this we anticipate smaller movements, observable from smaller temporalities.
The daily time frame maintains a bullish scenario, product of a clear succession of increasingly high lows.
Thus, the only way for bears to take control of this positive structure is to go through the support at USD 9,150.
The candle that closed yesterday, ended with good bearish volume, and indicates that the recoil can still extend for a few hours.
The EMA of 8 and SMA of 18 stays upward, and functioning as mobile supports while the bears try to shift the price to new floors.
The important 200-day SMA is also bullish today, after being traversed on January 28.
The RSI of length 5 remains above level 50, supporting all other bullish signals, for the continuation of the current trend.
Bitcoin technical analysis from intraday temporary
From the graphics with candles of hours is where you begin to see the temporary change of feeling; seeing small bearish structures that have been spreading during the last hours.
In the 4-hour temporality we observe the EMA of 8 and SMA of 18 crusades down. Supporting the situation, the RSI has become bearish, but remains fairly close to level 50, so a sudden upward movement could reverse this signal quickly.
In the time frame with candles of 1 hour is where you can see more clearly, the small bearish transition.
The vendors took temporary control after they had enough strength to go through a support at USD 10,055.
Subsequently, with a validation setback, the bears continued their bearish course and brought the price towards USD 9,750.
Currently we observe a bearish succession in the temporality of 1 hour, with lower and lower minimums.
However, the area in which it is already incentivized purchases recently, so following the trend, it is likely to happen again.
In any case, everything we see today as a bearish movement is only a setback if we observe the trend of larger time frames.
The closest resistance is at USD 9,800If traversed, the bulls could resume the trend, otherwise, following support areas could be visited before Bitcoin challenges the October 2019 high, located at USD 10,350.
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