Bitcoin (BTC) is still looking strong, with some bullish signs coming in to coincide with defense at a clear uptrend support line. $10,200 is emerging as an important level, as the leading crypto decides if it needs a longer period to cool off from its blistering uptrend.
Starting on the 4-hour chart, we see that Bitcoin’s bounce yesterday off of both horizontal support and uptrending support has, for now, staved off thoughts of a MTF downtrend. This bounce is so far rejected at $10,200, a local high from a couple of weeks ago.
Taking this level will eventually become necessary in order to stay on-trend. Until then we could see some consolidation between that level and the uptrend. The RSI is recovering and starting to put in higher highs and lows again.
Turning to the daily chart, we see that the LTF downtrend was halted at the 21 EMA after a deep buy wick pushed price back above the average for the close. This was followed by a powerful bullish engulfing candle yesterday that pushed price back over the 8 EMA.
This is certainly an auspicious outlook. It was looking before as if Bitcoin was going to enter a corrective period and/or a MTF downtrend, but now there is plenty of paint on the chart to suggest otherwise. The histogram has put in the first bar of a reversal, and today’s close will give us a better picture of where momentum is heading.
The other piece of news today is the Golden Cross, which has completed. We discussed the importance of this at length a few days ago with a full history and analysis of Bitcoin’s crosses; and here we see that, in a slight disappointment, the two moving averages are not quite both pointing in the same direction; however, it does complete a likely three-sequence of crosses which usually results in an extended trend in that direction (in this case, up).
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