After a week of healthy consolidation, Bitcoin finally bounced back from the daily 26-period EMA which was held for 2 days in a row. Yesterday, BTC saw a significant 5% price increase breaking above the 12-period EMA and confirming a 4-hour uptrend.
Bulls were able to break above several 4-hour resistances and the 12 and 26-period EMAs have now crossed bullishly again. The RSI is not too overextended which means bulls have enough momentum to break above the newest resistance at $10,250.
There is also a significantly bullish indicator on the daily chart, there is an RSI divergence formed clearly where Bitcoin went from $9,093 to $9,452 while the RSI dropped from 61 points to 53. This indicates that bulls have a lot of strength and we are very likely to see a break of the recent high at $10,500.
What if… Bitcoin?
This the second most likely option for Bitcoin at this point. If the price is rejected from $10,500, the bulls will form a lower high and create a daily equilibrium pattern that would still favor them. Bears would need to see significant continuation after a double top and break below $9,452, the most recent support level in order for the bulls to be concerned.
At that point, if Bitcoin loses the daily uptrend, we will zoom out to the weekly chart which is in a strong uptrend currently. Anything above $8,238 is simply a higher low here which means that even if the bears are able to break below $9,000 the bulls are still comfortable in a weekly uptrend which definitely needs a bit of consolidation.
So far, the monthly chart is looking super strong for Bitcoin trading above both EMA’s which are bullishly crossed and facing little resistance to the upside.
Meanwhile, Bitcoin’s market dominance keeps dropping and it’s currently at 62% from 66% just two weeks ago. This doesn’t necessarily mean that Bitcoin is losing strength but rather that Altcoins are gaining it.
Binance has been undergoing unscheduled system maintenance and people were speculating about a possible hack although the CEO of Binance has stated that funds are ‘SAFU’.
This could, however, impact the whole crypto market negatively although for now, there seems to be no effect whatsoever.