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The Bitcoin market reversed its upward trajectory during the February 18 trading session.
The Bitcoin Dollar Rate (BTC / USD) on Monday set a high intra-day high of 3917, up 8.08% since the opening. The pair progressed during the Asian session and continued its momentum after the opening of the European market. At around 1600 UTC, the BTC / USD also exceeded strong resistance trend line of the medium-term triangle configuration discussed in our badysis of Bart Simpson. Viewing:
BITCOIN PRICE TABLE 4H | SOURCE: COINBASE, TRADINGVIEW.COM
Last week, we left the Bitcoin market in a skewed conflict. The cryptocurrency formed what looked like a bull's flag. Nevertheless, as the flag was created after a day-long rally on February 8, we were not sure of its short-term durability.
But today, the upward escape of the small descending channel (in the chart above) has confirmed an intermediate upward bias. As discussed, we opened a long position towards the red line above (the same strong resistance trend line) and managed to make a decent profit on our intraday trade.
False Breakout Area?
BITCOIN PRICE TABLE 4H (ZOOMED) | SOURCE: COINBASE, TRADINGVIEW.COM
Technically, Bitcoin is in a strong position. Today, we have seen a bullish cross. Such a move is confirmed when a short-term moving average exceeds a long-term moving average. In the graph above, one can notice how the 50-period EMA has exceeded the EMA at 200 times exactly when Bitcoin posted a $ 100 green candle.
After breaking above the red trend lineBitcoin has now entered what we call a false escape zone. That said, the cryptocurrency can always return to the triangle configuration area defined between two red trend lines. Bitcoin should first establish a new interim support in order to continue the next action upwards to confirm a strong bias. And after that, we think that going above $ 4,000 would confirm a stronger upward trend.
Bitcoin 1D Chart
PRICE OF BITCOIN PRICE 1D | SOURCE: COINBASE, TRADINGVIEW.COM
In a long-term scenario, the uptrend of Bitcoin is capped by a giant downtrend line. As long as we see bitcoin under the broad line, we can not establish a bullish bias in its own right. On a positive note, the daily RSI broke the 57.7% mark for the first time since September 23rd. It announces positively bullish momentum in the medium term.
Bitcoin Intraday Target
For long trades:
- We are getting into $ 4,000 for a long time.
- At the same time, we maintain a stop loss 1 pip order below the point of entry.
For short trades:
- We are waiting for the sign of the trend reversal (sales action coupled with an increase in volume)
- We are moving towards the 4H moving average over 50 periods.
- We maintain a stop loss 1 pip order above the point of entry.
Secure commerce!
Click here for a real-time bitcoin price chart.
Featured image of Shutterstock. TradingView Price Charts.
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