Bitcoin is in a "rut" if you can call it that after a run up from close to $1000 at the start of 2017 to over $10000 currently. But relative to the $20000 high in January and to the last couple of months of relentless bull run, bitcoin can be considered in a rut. And price action in the past week suggests there's more consolidation/correction.
- We did see a bounce from 9000 up to almost 13000, which was a previous support area.
- The mini bull run was rejected there, suggesting bears are still in charge.
- Furthermore, in this 4H chart, the dip from 13000 represents respect for the cluster of 200-, 100-, and 50-period simple moving averages (SMAs) as resistance - another sign that bears are in control in the short-term.
- One last observation in the 4H chart is that the RSI came up from under 30 but held under 60. This reflects maintenance of the short-term bearish momentum.
15K Might be Key
- Still, this is bitcoin, so a very short-term rally is possible, to let's say 14-15K. Here bitcoin will face another set of resistance factors, and only a break above 15K should reflect a turn back to a bullish market.