Bitcoin (BTCUSD) 1H Chart 3/10 (click to enlarge)
Bitcoin didn’t take long to continue its uptrend after consolidating for almost a week. After stalling around 285, BTCUSD fell to about 262 and started to coil, which means it was trading sideways with declining volatility.
It continued to consolidate throughout the weekend, but started the week on a bullish note pushing above a local resistance around 280. Then, after another confirmation of the 50-hour SMA as support, it surged above 285 and looks poised to continue towards the 300-310 resistance from January.
The 1H chart shows a market dominated by bulls in the near-term as price holds above the 200-, 100-, and 50-hour SMAs, which are starting to slop up and are in bullish alignment. The RSI has held above 40, and tagging above 70 finally shows establishment of bullish momentum.
The bullish technical conditions are even clearer in the 4H chart.
Bitcoin (BTCUSD) 4H Chart 3/9
(click to enlarge)
The 4H chart shows price also holding above the 200-, 100-, and 50-period SMAs, which are sloping up and in bullish alignment. The RSI has tagged above 70 a couple of times and held above 40, even 50. IT is now pushing above 70, showing that the bullish momentum is clearly maintained. There is a bit of overbought condition as the RSI pushes above 70 again, especially if price approaches the 300-310 resistance.
At this point, a bullish market should find support at 280-285 if the current rally is to extend towards the 300-310 target. Above that, the 2015-high of 321 would be in sight.
A break below 275 at this point would suggests another consolidation against this late February – early March rally. Otherwise, look for price to put pressure on the 321 high on the year.
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