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Wednesday's bitcoin price was marked by the arrival of bulls, which jumped 15%, which is an impressive rebound.
The BTC / USD index opened at 3776-fiat while continuing the uptrend of the previous day. He continued to form higher highs, eventually reaching his daily high at 4350 fiat at the US stock market. At the time of writing these lines, the pair is trading at 4300 fiat, up 23.6% from its annual low of 3451 fiat.
Technically, on the 1D chart, the relative strength index is close to 38, which remains a bear zone. The momentum indicator, however, should be higher – around 50 – to offset the short-term bias. The MACD is still inside a negative territory, and it would require a strong positive momentum for a potential upside crossover.
The bearish bias further darkens the bitcoin market, and it is expected to remain strong unless the BTC / USD exchange rate exceeds the broad downward trendline illustrated by a dotted line. Intra-day bullish action could be only a bearish flag forming before the price drops again and retires at 3500 fiat as support. The price never hit bottom, unless 3500-fiat proves its credibility consecutively, as was the case for 6000-fiat all year – until recently anyway.
Meanwhile, the US dollar weakened and fell into negative territory after Federal Reserve Chairman Jerome Powell said US interest rates were "just below" the rate. neutral. Almost all dollar rivals, including GBP and EUR, recorded intra-day gains. The uptrend of Bitcoin comes at almost the same time.
BTC / USD intraday badysis
The BTC / USD rate is moving comfortably in a rising parallel channel, albeit too narrow. In terms of our intraday strategy, we are relying on the 4369-Fiat to keep the resistance up, while its 50-period moving average close to 3851-Fiat could offer decent interim support.
That said, we are preparing for small group action first. A move over 4369-fiat would make us prepare a long position towards 4486-fiat. As we do, we will maintain a stop order of $ 3 to $ 4 below the initial entry point, to minimize our losses should the bears attack the current rally.
The reverse pattern of the head and shoulders is a strong argument in favor of 4486-fiat as cleavage potential. A prolonged escape action would not come immediately if it came anyway.
The RSI indicator on the hourly chart indicates that BTC / USD has stayed too long in the overbought area, so it could reverse quickly. If this happens, we will open a short position on the SMA at 50 periods while maintaining a stop loss order just 4-5 dollars above the entry position.
We will move to our breakdown strategy if the BTC / USD exchange rate falls below the level indicated for the ADM. Then, our downside target would rise to 4042 fiat, with a stop-loss barely $ 3 above SMA support, minimizing risk.
Trade safely!
Featured image of Shutterstock. TradingView Charts.
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