Resistance Is Not Futile: Bitcoin Blasts Through Key Price As Uptrend Resumes
Bitcoin uptrend: The Bitcoin price has officially confirmed an uptrend on the one-hour chart. This is where to look for resistance.
Covered:
- An Uptrend Defined
- Resistance is Not Futile
- Bitcoin Uptrend: When In Doubt, Zoom Out
- What Do the Fibonacci’s Say?
- Closing Thoughts
An Uptrend Defined
An uptrend is defined on the chart as a series of higher highs and higher lows. In just the past hour, Bitcoin has confirmed this pattern as it blasted up towards $60,000 USD.
This move up is supported by rising volume, and unsurprisingly, gives traders the confidence to step back into the market.
Assuming the Bulls will continue to push the price higher, it’s important to be aware of the key spots where we might encounter resistance.
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Resistance Is Not Futile
The first place to be aware of is right where we are now, the $60,000 mark. This can be called “psychological” resistance because traders often gravitate towards nice round numbers as they look to take profits.
This is currently visualized on the chart as a downtick on the RSI as it approaches the “overbought” level of 70 (dotted line). This could also be seen as a loss of momentum to the upside.
Bitcoin Uptrend: When In Doubt, Zoom Out
When we zoom out to the daily chart, we can see that the 50-Day Simple Moving Average (SMA), represented by the green line, is also sitting just under $60,000.
Price tends to respect important moving averages, such as the 50-day SMA, so this is definitely the first place to expect resistance.
What Do The Fibonacci’s Say?
If we pull a Fibonacci Extension from the current all-time high of $69,000 to yesterday’s swing low at $55,625, we find that the 20 Day Simple Moving Average (yellow line) is sitting in confluence with 0.5 Fibonacci level.
This, in my opinion, is the current level that must be reclaimed. When daily candles begin to close above this level, new all-time highs will become much more likely.
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Bitcoin Uptrend: Closing Thoughts
While Bitcoin has confirmed an uptrend on the one-hour chart, the same cannot be said on higher time frames.
In fact, on the daily/weekly, an uptrend will not be confirmed until new all time highs have been hit. So, let’s take one step at a time.
What’s most important right now is to see tomorrow’s weekly candle close above our key support at $58,367.
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Find yesterday’s analysis here:
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Text source: CryptosRus
