Bitcoin (BTC) continued to recover last week, in its extended relief bounce from the sub-$4,000 lows we saw during ‘March Madness’ (forgive me). After getting over the important $6,800 hump, Bitcoin has a chance to make it all the way to the top of this structure. But another resistance level waits in between, and Bitcoin’s strength is not completely apparent on the charts.
Starting on the weekly, we see that a generally strong performance was put in last week with a thick bullish candle – admittedly with a large sell wick on top that pushed the closing price back below the 8 EMA. Thus, this is not a completely bullish profile.
Volume has not kept up with this bounce, so we will probably need to see more buying come in if Bitcoin is to have a chance getting over the band of resistance starting at $7,500. This resistance is clear on the weekly chart, drawn from late-2018 candle tops; and the 21 and 55 EMAs also lie right inside this area.
If we go to the weekly indicators, we see that the RSI was brutally sold off last month, and stuck far under the critical 52% level which historically marks a bull market. We should not expect this level to even be approached, much less broken any time soon, thus limiting any long term bullish outlook.
We see that the histogram is doing well, marking a sharp reversal lack week in taking upward momentum; but this doesn’t mean that it will make it back to the positive side on this run.
Finally, on the daily chart, we see that momentum is not seeming to follow up on last week’s gains. Volume and momentum are the problem, both of them lacking even as the EMAs are being held.
Overall, Bitcoin is well set up to make it to $7,500 pretty easily; but beyond that, it seems to be wanting of more momentum and buyers.
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