Recently, I noted that we should look for resistance if Bitcoin (BTC/USD) runs up to $7.8K. Instead of a direct bullish correction, it traded in a sideways consolidation, which eventually turned out to be a rounded bottom as we can see in the 1H chart.
BTC/USD 1H Chart
- As we can see on the 1H chart, price has rounded out a bottom. Price is now above the 200-, 100-, and 50-hour simple moving averages (SMAs), and is breaking above a falling trendline.
- Momentum is starting to look bullish as well with the RSI being able to tag 70 but unable to tag 30.
- If price can hold above $7450, it should be able to push towards the $8000 mark. I feel that the energy built up in the rounded bottom would be able to push price above the previously anticipated resistance around $7800.
- Instead I wouldn't be surprised to see Bitcoin push above $8000 briefly.
- Bitcoin is volatile, so even a push to $8600 is possible before the next phase of consolidation.
- I noted that this bullish outlook relies on a hold above $7450, which is where the current breakout is being launched from.
- A break below $7450, and then $7400 (where the 200-hour SMA resides), would open up a bearish continuation scenario.
For now, I can't say the market is bullish or bearish, but it does look like it is setting up for a short-term bullish attempt towards at least $8000.