Bitcoin’s (BTC) bulls have staged a defense after nearly a month of losses, but a short-term bullish trend reversal is not yet confirmed, the technical charts indicate. As of writing, the cryptocurrency is up 5 percent at $7,487 on Bitfinex, having clocked a four-day high of $7,560 earlier today.
A minor corrective rally had been expected, courtesy of a bullish price-relative strength index divergence in the short duration charts seen over the last two days. Further, the resulting bullish outside-day candle engulfed the price action seen on Monday and Tuesday, and has neutralized the immediate bearish outlook.
As the name suggests, the bullish outside-day indicates a bearish-to-bullish trend change. However, analysts and traders usually wait for confirmation – positive follow-through before calling a reversal.
So, a short-term bullish trend reversal would be confirmed if bitcoin takes out the descending (bearish) 10-day moving average (MA) hurdle in a convincing manner. Currently, the 10-day MA is located at $7,562 and is capping the upside in prices, as seen in the chart above.
Meanwhile, the 50-candle MA hurdle in the 4-hour chart below is also proving a tough nut to crack. A high volume break above the 50-candle MA of $7,520 could see bitcoin attack the descending trendline hurdle, currently located at $7,930. Read more from coindesk.com…
thumbnail courtesy of coindesk.com