Bitcoin price surged earlier today to print a high of $325. It seems that the $290-$300 level is supporting the price quite well, as the downtrend has been always reversing whenever the price approaches the $310 level which reflects that this level is supporting bitcoin price quite well.
New Uptrend On The 1 Hour Charts:
By observing the 1 hour (BTC/USD) charts from Bitstamp (look at the below chart), plotting the 20,50 and 100 EMAs and executing the RSI and keeping the Fib retracements we plotted earlier this month, we can conclude the following:
- Just when bitcoin price fell to touch the $310 level at around 2:00 am today, a long downwards candlestick shadow was formed, which reflects the strong support at this level, and the downtrend was reversed and bitcoin price started rising to score a high of around $325.
- Since the 16th of November, price was well supported above the $300 level as shown by the long downwards shadows of the candlesticks whenever bitcoin price approached this critical level (look at the below chart).
- Bitcoin price has just surged to exceed the 20 period EMA, which reflects that the new upward trend is strengthening up. We can see the price rise to even higher levels if it exceed the 50 and 100 period EMAs within the next few hours.
- The RSI is in a zone that permits further price advancement i.e. bitcoin is not over bought. Moreover, the RSI is sloping upwards which is in favor of continued strengthening of the market’s buying power.
Indecisive Market on the 1 Day Charts:
Let’s examine the 1 day (BTC/USD) charts from Bitstamp (look at the below chart), plot the 20,50 and 100 EMAs and execute the MACD indicator. We can notice that:
- Bitcoin price is now way above the 20 and 50 period EMAs, yet it is below the 100 period EMA
- The MACD indicator is sloping downwards and the red negative trend line is above the blue positive trend line, so I would recommend not opening new long trade positions until this pattern is reversed.
Bitcoin price started rising today hitting a high of $325. Our technical analysis is in favor of continuation of this new uptrend so we can see the price hit $340 within the next 12 hours or so; however, it is advisable not to open new long positions until the MACD pattern is reversed on the 1 Day charts.
Charts from Bitstamp, hosted on Tradingview.com