Bitcoin – at the time of writing – seems to be taking a breather from its upward climb. Having established a new ATH (All-Time High) at $68,750 before ceding ground in the last four-hour session, descending to a daily low of $62,757.
Weekly
The Weekly chart – viewed through Huobi chart, streamed via TradingView – infers that the BTC/USDT market may be set up to take a slight breather, following its “moon shot” to a high, comfortably above $66.5k resistance level. The MACD indicator’s histogram, for the period, indicates less decisive action in the past 4 weeks, though market momentum looks to be on a sturdy climb.
Though the RSI shows the market to be in an oversold condition, it may continue in that position for a few more sessions. Failing which, if price breaks below the $65k- $58k price band, a descent to the $52k resistance level could also be in the cards.
Though the current weekly session’s candle looks to be forming an inverted hammer – which is still subject to change – the BTC market may seek to consolidate its new position before making a challenge of the $77k and $85k price levels.
Daily
The daily chart’s price action shows a bearish engulfing pattern (not a good sign for bulls), following a bearish harami pattern. The stub indicator seems to be foreboding an imminent bearish drive, with the Stochastic RSI in oversold position, and moving averages pointed – decidedly – downwards. Which may still change, as nothing is absolute till the session closes.
Interestingly enough though, the current daily belt hold candle (as it stands at the time of writing) coincides with a drop in Institutional Bitcoin Futures Open Interest, which had buoyed prices to new highs following the US financial regulatory body, the SEC’s (Securities and Exchange Commission) approval of a Bitcoin-based Exchange Traded Fund (ETF) at the beginning of last month.
4hr Chart
The 4 Hour price chart offers more detail on current happenings, with the sharp drop experienced at the open of opening of today’s trading session, looking to be a textbook pullback – following a strong breakout from a descending wedge pattern (usually a good sign.) Price established a low of $62.7k, slightly below the $63k support level before wicking to the current price (at press time) of $64.7k
