Yesterday was a pretty good day for Bitcoin (BTC), with a modest bump off of stiff support at $9,400-500 back up to $10k. The leading crypto is lingering around this area, and continued presence here could help build a base of higher support - the longer it stays here, the better.
Looking at the daily chart, we can see that Bitcoin closed yesterday very fortuitously above the 9 and 55 exponential moving averages (EMAs). Volume for the day was decent, although nothing truly impressive.
Closing the day above the 55 EMA would be a major accomplishment on this timeframe, and could presage more upside.
Another notable feature of the daily chart is the retest, today, of the 33 EMA. This average has been very important for the 2019 Bitcoin market, as it had previously held every Bitcoin dip during this year (see here for more detail). Retaking this level, only lost in July, could signal a return to a full uptrend across all timeframes
Looking at the 12-hour chart, we highlight the possibility of a double bottom at local support, which is perhaps giving a tailwind to the present bounce.
Finally, moving to the 3-day chart, we should note the volume profile on the present bump. A previous bounce in mid-July had a nice looking candle close on this chart; but it didn’t come with attendant strong volume and, thus, did not result in a break of the mid-July downtrend.
This bounce is also looking good so far (Huobi), and volume has a chance to outpace the previous candle’s by tomorrow, when it closes. Such a reversal in the volume profile could signal that Bitcoin is finished with its correction to $9,000.
In total, the current bounce is promising. Holding the 55-day EMA would be something. Closing out with strong volume would be even better, and show that buyers are serious about supporting $10k. As we head into the weekend, we must remember that weekends are often the most volatile times for the Bitcoin market.
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