Bitcoin has bounced sharply over the past 24 hours, simultaneously re-stimulating momentum on most charts.
The coin bottomed out at $ 9,100 on Tuesday night and then quickly rose sharply to $ 9,400 at the moment.
Bitcoin faces heavy selling pressure and risks sliding back to the 200-day MA of $ 8,867. After all, Bitcoin broke through the sensitivity of $ 9,188, invalidating Monday’s doji.
Looking longer, the coin has severed the past two consecutive days of falling.
4-hour candlestick chart
Bitcoin was able to get past the upper limit of the price channel. This breakout shows the bounce from Monday’s peak of $ 9,615 is over and a new bull is in place. Support for this breakout is the RSI, which is currently inclined to the uptrend.
MACD has also crossed the zero mark to establish an uptrend.
Daily candlestick chart
Bitcoin triggered a Tuesday decline, while minimizing the impact of the doji, as the 50 and 100 day moving average crossed earlier this week.
The coin is also currently priced above the 5 and 10-day MA, while the RSI has approached a strong fluctuation area above 50.
If the candlestick closes above the top of Monday at $ 9,615, the buying force will be even stronger and Bitcoin could head towards $ 10,000.
On the contrary, if it falls below Tuesday’s low of $ 9,075, a break out on the 4-hour candlestick chart will not be confirmed and the market will see a risk of falling below $ 9,075.
- Bitcoin just bounced back to $ 9,450 from $ 9,100 and removed the effect of the bearish doji candlestick pattern on the daily chart.
- The breakout of the price channel on the 4-hour candlestick chart shows that Bitcoin can retest the $ 9,600 peak.
- If Tuesday’s bottom candle is closed at $ 9,075, the market could experience a deeper correction.
According to CoinDesk