Bitcoin – Upward Movement True or False?
Bitcoin / Dollar BITSTAMP:BTCUSD
The price tries to move above the resistance at 4000.00 level. We can see an attempt to break this level but a new bearish candle tells us about a possible reversal. For the true breakout, the market must have reasons. But now there are no news or other fundamental factors which could increase the demand and push the market upward. Even the price will break the 4000.00 level, the upward movement won’t be strong and stable. The nearest reversal zone will be at 4200.00-4400.00 levels. So, getting the reversal from 4000.00 level will be logical. Indicators are going to confirm the reversal.
RSI is in overbought zone, and it’s going to reverse. MACD histogram is going to move downward support the same market movement. DMI is bullish , but ADX slides a little bit upward not far from 20 signal level. It tells us that buyers are not so active. The bearish candle confirms the bouncing from the resistance. We just need to wait for the close price of this candle.
The market stays bullish in the long run, and it keeps the uptrend structure. For upward movement in the long term, we will need to get fundamental support.
As for short and medium term price movements – they can be manipulated upward or downward. But without any news and fundamental factors, the sideways is the most logical move for such markets.
Buy levels stay at the support levels and the main uptrend line.
Source: TW DLavrov