Bitcoin, the godfather digital asset, seems to be preparing to retake previous highs as it sets up to break out of a long bearish trend.
Bitcoin – at the time of writing – seems to be setting up to break out of an extended downward trend. Up about 1.5% on the day, the godfather crypto asset (by market cap,) looks as though it is preparing to retake previous highs.
Statoshi Nakamoto’s brainchild, $BTC, seems to be regaining speculative favor – in the way of more bullish momentum – as the digital asset seems to be looking to break from a bearish slump. At time of writing, priced at the circa-$37,260 level, $BTC looks to be working on an upward breakout, despite being down 1.9% on the day.
Closing the previous trading day at $37,977 (according to Huobi BTC/USDT charts, streamed through TradingView) BTC opened today’s session at $37,978. The biggest cryptocurrency, by market capitalization, reached a high of $38,239 on the day and registered a low of $36,629 – as things currently stand.
Today’s candle – painted red – completely engulfs the previous trading session’s candle, but this doesn’t necessarily foretell a return to bearish form. Yes, the market may still reach back down toward the $36-$35k support levels in coming sessions, but we’re still looking at higher lows. Other indicators seem to signal a strong breach of the $38,100 resistance level in the looming days.
With the Bitcoin market looking rather confident, of late, the next resistance levels – after the $38.1k – to beat are the $40k, $41.8, and $43.5, respectively. A decent March beyond those levels will mark the market as ready to, once again, challenge the $49k – $52k price levels.
Taking a gander at the stub indicators, both the MACD and Stochastic Oscillator, on the market signal a bullish crossover, with the fast line breaking above the slow line. The bullish divergence signals, we reported last week, seem to have held.
The MACD is now showing a more positive histogram, although Moving Averages have yet to break above it. A bullish crossover, however, indicates that momentum may be starting to return to the markets.
The Stochastic is also looking strong, with Moving Averages just touching the 100 lines. The indicator has, yet, to cross into the oversold zone, so we still have some room for bullish price action before we drop. Sell volume is also quite indicative of a market gaining strength.
The Ichimoku Cloud’s Chikou line, at present, seems to be the only reliable one as it indicates higher lows, while the indicator’s other Moving Averages are still looking undecided as to which direction to take next.
We may still be in bear country, as the indicator points out, but we’re still up about 15% in the last 7 days. We still expect a few dicey moments on our climb back up to $50k, it looks as though $32.9k may have been our bottom though.