The market has rebounded significantly since the Ethereum’s crash below the $270 level with most of the coins have recovered almost 50 per cent of its lost value and Bitcoin price have also stabilized.
With major coins recovering including Ethereum which is now nearing the $300 level, Ripple (XRP) is holding above the $0.3125 level.
In our previous analysis of Bitcoin, we have indicated that prices may hold above as there were clear signs of market reversing its trend. Now continuing from there, Bitcoin is consolidating between the $6,200 and $6,500 level in the last two sessions without showing any signs of negative momentum.
Also, in the daily chart interval, Bitcoin has formed a Hammer and Inverter Hammer candle pattern in the lows of the formation and has been followed by two green candles. The formation is indeed a clear indication of trend reversal but now it has to break above the $6,500 and $6,800 level in order to break out completely from the negative momentum. Other technical indicators including Stochastic and RSI is moving higher from the oversold position confirming the trend reversal.
In the Hourly Chart, a strong resistance is placed around the $6,500 and $6,600 level and needs to break above in next couple of hours in order to scale further higher. In alternate case scenario, if Bitcoin price breaks from here, then next immediate support is placed at $6,200 level and then at $5,800 level which now unlikely to happen.
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Key PointsBitcoin price recovered nicely after forming a support base near $6,200 against the US Dollar.There was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair may perhaps continue to move higher towards the $6,570 and $6,750 resistance levels.Bitcoin price is signaling more gains above $6,550 against the US Dollar. BTC/USD could accelerate once buyers gain momentum above $6,550-6,600.Bitcoin Price AnalysisYesterday, we saw a downside correction below the $6,300 level in bitcoin price against the US Dollar. The BTC/USD pair tested the $6,200 support where buyers emerged. The price formed a base near $6,200 and the 100 hourly simple moving average. Later, there was a fresh upward move and the price traded above $6,300 and $6,400. Moreover, there was a break above the 50% Fib retracement level of the last slide from the $6,650 high to $6,213 low.More importantly, there was a break above a key contracting triangle with resistance at $6,375 on the hourly chart of the BTC/USD pair. The pair is currently trading near the 61.8% Fib retracement level of the last slide from the $6,650 high to $6,213 low. Once it clears the $6,547 and $6,550 resistance levels, it could accelerate further higher. The next resistance could be around the last high at $6,650. Above this, the price will most likely test the 1.236 Fib extension level of the last slide from the $6,650 high to $6,213 low at $6,753.Looking at the chart, bitcoin is placed nicely above the $6,300 level. It seems like buyers are likely to take control above $6,500 in the near term. The important supports on the downside are $6,375, $6,300 and $6,200.Looking at the technical indicators:Hourly MACD – The MACD for BTC/USD is placed in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI is moving higher and is currently above the 55 level.Major Support Level – $6,300Major Resistance Level – $6,550
Key HighlightsETH price is gaining momentum and it could break the $304 resistance for more upsides against the US Dollar.There was a break above a key bearish trend line with resistance at $295 on the hourly chart of ETH/USD (data feed via Kraken).The pair might decline a few points towards $290 and $288 before climbing higher in the near term.Ethereum price is placed nicely in a bullish zone against the US Dollar, but it is struggling versus bitcoin. ETH/USD may soon break $304 to gain momentum.Ethereum Price TrendThere were mostly range moves above the $277 level in ETH price during the past few sessions against the US Dollar. The ETH/USD pair formed a decent support near $277 and later started an upside move. It traded above the 50% Fib retracement level of the last drop from the $331 high to $250 low. There were a couple of bullish candles formed above $280, but bulls failed to gain momentum.More importantly, there was a break above a key bearish trend line with resistance at $295 on the hourly chart of ETH/USD. The pair is now trading above the $290 level and the 100 hourly simple moving average. If the recent break is true and buyers gain traction, the price may well move past the $304 resistance. Above this, the next resistance is near the 76.4% Fib retracement level of the last drop from the $331 high to $250 low. Finally, the price might aim to test the last swing high at $331-332.Looking at the chart, ETH price is trading with a positive bias above $277-280. In the short term, there could be a tiny bearish reaction, but the price is likely to find support near the $282 and $277 levels.Hourly MACD – The MACD is showing positive signs in the bullish zone.Hourly RSI – The RSI is now placed well above the 50 level with a bullish angle.Major Support Level – $277Major Resistance Level – $304