Bitcoin started this week on a good note and is continuing to rally. In the 4H chart we can see that it started the week and month but breaking above last week’s consolidation range between roughly 232 and 250.
Bitcoin 4H Chart 3/3
(click to enlarge)
At first the cryptocurrency was held at 255 and price pulled back to about 245. However, traders respected the broken range as support, and held above the 200-, 100-, and 50-hour simple moving averages. When price crosses over the SMAs and starts to hold above them, it is telling us that bulls are now in charge.
Also, the fact that the 4H RSI pushed above 70 then held above 40, even above 50, shows strong evidence of bullish momentum development. Indeed, price shot up during the 3/2, Monday session. From the daily chart’s perspective, Bitcoin has stabilized the decline from 2014 and is looking to build a price bottom or at least consolidate for the medium-term. In the short-term, there is upside risk towards the high of the recent price range around 300-315.
Bitcoin (BTCUSD) Daily Chart 3/2
(click to enlarge)
From the daily chart, we can see that price is crossing over the 50-day SMA, so it has neutralized the market at least in the short-term. Also, the fact that the daily RSI has broken above 60 shows the loss of the prevailing bearish momenutm. The next hurdle will be around 287, the 100-day SMA, and a falling trendline.
Above that, the 300 up to 315 area consists of a support/resistance area. If price can get by this key level, the 350-355 area represents another key support/resistance pivot to monitor for sellers.
We should turn bearish again after the market has captured 315 because while the short-term to even medium-term outlook might be sideways-bullish, the prevailing mode in the long-term (since the beginning of 2014) has been bearish and intact.
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