Recently we noted that Bitcoin (BTC/USD) was forming a rounded bottom. While rounding out this bottom, price found resistance around $7780. Then, price dipped to about 7355 before rebounding.
Now, the rounded bottom has evolved into what looks like a "cup and handle" pattern. Basically, price was able to hold mostly above the middle of the range for the rounded bottom, which was from around 7750 to about 7060 (the middle was around 7400).
BTC/USD 1H Chart
Short-term Bullish Bias:
- Judging from price action, it looks like BTC/USD is in the middle of a bull run at least in the short-term.
- The 1H chart, which is better for assessing short-term trends show that price held above the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs)
- Bouncing off these SMAs is a bullish "slingshot" signal.
- I think there is upside conservatively to around 7925, which was a previous support pivot.
- More likely, there will be a push to $8100-$8200 area, which was also a previous support pivot area.
- While the short-term trend appears bullish, we have to remember that the 2018 trend has been bearish.
- The thing is, it has turned more sideways. Still, the market is neutral-bearish and is NOT bullish yet, out side of the short-term.
- From the chart, it looks like the bitcoin still has a good chance to fall back towards $5600 and possibly $5000.