Bitcoin Daily MACD Strong Bullish Divergence
I am back today after some frustrating tech issues and a bloody crypto market yesterday. Bitcoin is showing some signs of life with a nice bounce today, but how long can this last?
First one is the standard hourly analog Bitcoin Bitfinex chart. Price is recovering nicely from the past two days of capitulation where price touched $6,108 just a $108 shy from the lows back in February.
I have drawn two orange lines indicating a descending wedge on price over that period and you can see how price broke up and out of that wedge around 10pm EST last night.
The candle there made a beeline for the thick blue line which represents the 50 hour moving average, but fell just short of it. A few hours later price did push through their briefly before being shoved lower back down to $6,322. But the bulls were not to be denied this time as we have big $150 candle from around noon EST today pushing price back up to $6,642 where price resides now.
This 50 hour MA has been a tough level to breakthrough for the bulls the past few days, with the last crossover occurring last Friday night June 8th, to begin the bear smash signal. Thus this will be an important level to keep an eye on for continued bull momentum.
You also probably notice the zoomed in view of a down-trending pitchfork that has a pivot anchor back on May 5th and covers the swing low and high on May 28th to June 3rd respectively. Since the price smashes on June 9th, it’s been holding the price action pretty nicely.
Notice how the low yesterday bounced right off the red median line and has since bounced all the way back to the outside of the blue channel now. This is a good sign that price could continue to fight upward for a while.
However if price continues to stall here at this blue channel line, it will definitely head back to that 50 hour MA at $6,464 before deciding what to do next. If price breaks up, $6,900 at the top of the purple channel will be the next target.
RSI and the MACD are a bit high and appear to be turning over as well as the volume dying off, so I believe a revisit to the 50 hour MA is most likely first.
On the daily analog Bitcoin Bitfinex chart the lime green line will be a critical level for support to the downside around $6,250. I have drawn a blue horizontal support line at $6,610 and a red down-trending line all the way back up at $8,850 which forms a descending triangle.
Many people see this as a bearish breakout from yesterday, however if you see price has fought all the way back to that level on bigger volume today. Is that enough to reverse the bearish trend?
Additionally, that red line and the lime green line are forming another descending wedge and if price can stay within it, it could carry some weight on the next bullish upswing.
Bitcoin is still recovering from the lowest RSI indicator level yesterday (26.81) since August 15th, 2015 (26.26) and unfortunately eliminated the bullish divergence that we were hoping might form by taking out the February 5th RSI low (27.00).
The RSI has only dropped into these oversold levels 4 times since the beginning of 2016, and some of the bear market action of 2014 is appearing quite similar compared to some of the pricing and RSI levels.
However a look at the MACD and there is some contrary evidence. I have circled 3 level in black on the MACD line where the blue trigger line bullishly crossed over the trailing orange line only for it to be a fake out and price then continued lower. The good news is the next the crossover did occur it lead to a nice bull run.
Additionally I have drawn lime green lines on the MACD to show the higher lows, but price is giving lower lows, this is a sign of strong bullish reversal divergence and I like the way that looks.If price heads back to the 50 hour MA and holds strong there could be a giant price pop in volume from there.
-More on Vanddar.com
First one is the standard hourly analog Bitcoin Bitfinex chart. Price is recovering nicely from the past two days of capitulation where price touched $6,108 just a $108 shy from the lows back in February.
I have drawn two orange lines indicating a descending wedge on price over that period and you can see how price broke up and out of that wedge around 10pm EST last night.
The candle there made a beeline for the thick blue line which represents the 50 hour moving average, but fell just short of it. A few hours later price did push through their briefly before being shoved lower back down to $6,322. But the bulls were not to be denied this time as we have big $150 candle from around noon EST today pushing price back up to $6,642 where price resides now.
This 50 hour MA has been a tough level to breakthrough for the bulls the past few days, with the last crossover occurring last Friday night June 8th, to begin the bear smash signal. Thus this will be an important level to keep an eye on for continued bull momentum.
You also probably notice the zoomed in view of a down-trending pitchfork that has a pivot anchor back on May 5th and covers the swing low and high on May 28th to June 3rd respectively. Since the price smashes on June 9th, it’s been holding the price action pretty nicely.
Notice how the low yesterday bounced right off the red median line and has since bounced all the way back to the outside of the blue channel now. This is a good sign that price could continue to fight upward for a while.
However if price continues to stall here at this blue channel line, it will definitely head back to that 50 hour MA at $6,464 before deciding what to do next. If price breaks up, $6,900 at the top of the purple channel will be the next target.
RSI and the MACD are a bit high and appear to be turning over as well as the volume dying off, so I believe a revisit to the 50 hour MA is most likely first.
On the daily analog Bitcoin Bitfinex chart the lime green line will be a critical level for support to the downside around $6,250. I have drawn a blue horizontal support line at $6,610 and a red down-trending line all the way back up at $8,850 which forms a descending triangle.
Many people see this as a bearish breakout from yesterday, however if you see price has fought all the way back to that level on bigger volume today. Is that enough to reverse the bearish trend?
Additionally, that red line and the lime green line are forming another descending wedge and if price can stay within it, it could carry some weight on the next bullish upswing.
Bitcoin is still recovering from the lowest RSI indicator level yesterday (26.81) since August 15th, 2015 (26.26) and unfortunately eliminated the bullish divergence that we were hoping might form by taking out the February 5th RSI low (27.00).
The RSI has only dropped into these oversold levels 4 times since the beginning of 2016, and some of the bear market action of 2014 is appearing quite similar compared to some of the pricing and RSI levels.
However a look at the MACD and there is some contrary evidence. I have circled 3 level in black on the MACD line where the blue trigger line bullishly crossed over the trailing orange line only for it to be a fake out and price then continued lower. The good news is the next the crossover did occur it lead to a nice bull run.
Additionally I have drawn lime green lines on the MACD to show the higher lows, but price is giving lower lows, this is a sign of strong bullish reversal divergence and I like the way that looks.If price heads back to the 50 hour MA and holds strong there could be a giant price pop in volume from there.
-More on Vanddar.com
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