Bitcoin Rally Hits a Speed Breaker at $6,750

Bitcoin (BTC) must conquer some key technical resistance to maintain the short-term bull economy moving, the technical research suggest.

The leading cryptocurrency climbed to $6, respectively 785 on Bitfinex on Wednesday – the maximum level as June 22 and appeared to check the emotional barrier of $1,000, as indicated by Monday’s bullish breakout.

However, the bulls failed to muster sufficient momentum to cross $6, respectively 754 (23.6 percentage Fibonacci retracement of this fall out of $9,990 to $5, respectively 755) to a daily basis (according to UTC), establishing that the Fibonacci degree as a rigid resistance.

Further, a thorough look at the specialized graphs reveals the region around $6,754 is packaged with moving average lines and Bollinger Band, all working in unison to put brakes on BTC price rally.

Hence, a convincing break above the resistance should happen soon, else a cost pullback may be in the offing. 

At media time, BTC is changing hands at $6,620 on Bitfinex.

4-hour graph

The preceding graph reveals:-LRB-*******)

  • The top Bollinger Band (standard deviation of +2,2 on 20-candle moving average) is situated at $6,570, the 200-candle moving average (MA) is observed at $6,717, as well as also the 23.6 percentage Fibonacci retracement can be found at $6,754.
  • Bollinger Bands are sloping upward in favor of the bulls.
  • BTC is trading over 50-candle MA and 100-candle MA and the two MAs are trending north (equal into the bulls).
  • The cryptocurrency has made a climbing channel-like structure. (bullish setup).

Clearly, the odds are stacked in favour of a persuasive move over the resistance zone of 6,717-$6, respectively 770. The bullish setup from the daily graph favors a rally to $1,000.

However, in case BTC fails to get a bid within the upcoming few hours, then the focus will probably shift into the bearish price-relative strength indicator (RSI) divergence found from the 4-hour graph. In that circumstance, the climbing channel could be broken to the drawback, triggering a deeper pullback at BTC rates. 

View

  • An competitive move over the resistance zone of $6, respectively 717 – $6, respectively 770 would add credence to the bullish installation from the 4-hour and daily chart and might make it possible for a rally to $1,000.
  • The focus could change into the bearish RSI divergence (viewed from the 4-hour graph ) if BTC fails to cut through the resistance zone of $6, respectively 717-$6, respectively 770 at the upcoming few hours. In this circumstance, costs can fall back to $6,330 (50-candle MA on 4-hour graph ).
  • A close under $6,275 (Monday’s non ) would abort the bullish view.

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Original post first appeared in https://www.coindesk.com/bitcoin-rally-hits-a-speed-breaker-at-6750/

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