Bitcoin, at the time of writing was trading at $7,526.76 and notably swifts above the major resistance at $7,300 followed by $7,500. In the past 7-days BTC price had even hit below $7,000, when we believed it to be a complete end of the bullish era.
However, the bullish candlestick pattern on the daily chart exhibits ‘Bullish Engulfing’. This is manifesting good trading indications for the coin as the daily trading turns out to be positive. The current movement of the coin is rightly supported by the daily 10-day and 50-day Moving Averages.
Bitcoin Technical Analysis:
Analyzing the daily BTC/USD movement on Coinbase, we see that the coin had formed ‘Bullish engulfing’ close to $7,000 just yesterday. This rightly formed an inverted head and shoulders and as a result we foresee a bullish trend in the upcoming days. We will confirm this Bullish trend after the coin rightly triggers above the Inverted Head and Shoulders’ neckline. The same is seen from the intraday move as we see the green candlestick trending upwards out of the H&S laid. A persistent run above $7,500 will be a good call for the trade. Otherwise, $7,500 has been acting as the major resistance throughout.
Irrespective of lack of support from the long-term moving averages, Bitcoin is under ‘buy phase’ and we believe that the current trend is real and not illusionary as confirmed by the laid technical indicators. The Bullish Engulfing is rightly to take the price of the coin higher, as anticipated.
The other technical indicators laid confirm the intraday bullish move and as per the 20-day Bollinger Band we do not foresee any negative breakout and volatility. Since the start of 2020, we see that Bitcoin price trend is inclined towards the upper Bollinger Band.
The MACD of the coin running below zero with a Bullish crossover as the MACD line hits above the signal line.
The RSI of BTC is at 56.44 and holds an uptrend to rightly hit the major resistance at 70 soon enough.