Bitcoin (BTC) has been trending up well this week, extending its relief bounce into a potentially longer trend. It has engaged the significant $7,500 level and put solid paint on the indicators; but trading volume is still lacking. We wait for more of it to put the leading crypto over this resistance level – or be rejected here.
Starting on the 4-hour, we see a strong RSI performance as Bitcoin moves up, with no bearish divergence threatening the LTF uptrend. The histogram is starting pause in its bullish expansion, though, which may signal a consolidation above $7k.
Volume is still the problem here, as we’ve seen only the most modest of bumps even as price has surged (Binance). Without it, we are unlikely to see the next level taken.
That next level starts at $7,500, which Bitcoin has just kissed in the last day, as we see on the daily chart. This level comprises a very significant inflection zone from multiple periods in 2019 – as well as the capitulation level from last month – and it should present a stiff resistance.
But the RSI looks healthy here, as well, with a consistent higher-high/-low pattern that only seems to be extending. This RSI also has plenty of room to go in for an uptrend to continue without getting oversold, and is now well over the 50% mark. The histogram looks healthy as well, and we may soon see a break of the current top for another bullish expansion.
Finally, the 3-day looks poised for more upside, with a histogram about to cross over to the positive side. If this bears out, we could see the resistance zone soon challenged.
Bitcoin is looking healthy, but the underlying takeaway is that more volume is needed to take $7,500.
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