Bitcoin made a 5 percent move higher yesterday up to $3877, which — as mentioned on Monday — was necessary to signal that the bulls would take the market back towards $4000. We take a deeper dive into the action to see if can keep up the momentum.
Looking at the daily chart, Bitcoin appears to have found support at the 50 and 100 daily moving average, with a single candle taking out the weekly opening at $3791. The Bulls will now look to establish support above this level in an attempt to gather their legs before another attempt at breaking $4000.
The daily MAC-D is still trending above zero and is looking to cross bullish, while the stochastic RSI has already crossed bullish and implies that another leg higher may be in the works.
The 200-day moving average is declining rapidly from $5000 and will likely act as resistance if Bitcoin can make a break to the upside. The last time it was tested as resistance was the key levels of $10,000 and $8,500, which resulted in continued downside for the flagship crypto…