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Bitcoin (BTC) Bounces, Aims At 10.5k Or 11.3k

Bitcoin ( BTCUSD ) retraced strong. We caught the last peak, now we are seeing that a new low has been set.

Bitcoin 4H Time Frame

Bitcoin can surely move up from current levels, I’ve drawn the main scenario I see developing on the chart above.

Let’s take a look at why and at some of the main signals below:

  • We can see a huge decline, I mean massive after the top of the 5th of August, it reached oversold yesterday, massively oversold down to 13.88. Bitcoin tends to bounce when it reaches such levels on the RSI.
  • The purple arrow marks the hidden bullish divergence. This shows up when the trend is up (Higher lows) while the indicator is down (Lower lows).
  • After the dashed red trendline is broken, you can expect the RSI to move higher and higher.
  • Here we can see that Bitcoin ( BTCUSD ) touched the outer part of the Bollinger Bands, to quickly bounce. The price always trades within these bands… This is a great indicator.
  • On the bounce, a bullish candlestick formed. You can see it marked on the chart. The large wick at the bottom means the rejection of sellers.
  • High volume is good, supports the bounce. Also supports the bounce back into the Bollinger Bands as well as the bullish candlestick and break above EMA5.
  • So unless the bears do a massive push down and break the last low set, Bitcoin is very likely to move higher from here and challenge the next resistance levels.


What do you think?

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