Bitcoin had been trading within a parallel descending channel on the hourly chart for almost two days. The bulls have now been able to break above this channel with a ton of followthrough and really significant volume. The RSI is now dangerously approaching 70 as bulls look for short-term consolidation.
Similarly, the 4-hour chart was also in a short descending channel, fortunately for the bulls, the RSI is only at around 55 here. The EMA’s are looking for a bull cross within the next day as long as the bull momentum continues. The MACD has already crossed bullish. The next resistance points for BTC on this timeframe are set at $8217 and $8280.
The daily chart shows a strong defense of the last support at $7710, the bulls were able to hold $7762 and are now bouncing off the overextended daily RSI. This puts Bitcoin in at least an Equilibrium pattern as a higher low has been set. The bulls can either set a lower high or break the high of $8500 and confirm a daily uptrend.
Many of the other top cryptocurrencies have followed suit but it’s important to remember that this recent rebound doesn’t necessarily change anything as BTC is still trading far below the daily EMAs.
Technical indicators are signaling to buy in the short term, like the hourly and 4-hour chart but pointing towards selling on the daily chart.
The weekly chart hasn’t changed much and the bear flag is still in play. The bulls would need to see a significant continuation breaking above the 26-period EMA here to nullify the bear flag.
The monthly chart has now seen two bounces off the 12-period EMA, currently at $7744. This support level has proven to be a tough area for the bears to break.
According to Whale Alert, Tether (USDT) has just minted around $20 million, Bitcoin seems to be directly correlated with the minting of USDT as every time the process happens, Bitcoin sees a nice price increase.