BTC/USD rallied yesterday, breaking above the 7650 zone, which acted as the upper bound of a sideways range that had been containing most of the price action since November 25th. That said, the rally was halted slightly above 7845, and then, it started oscillating around that barrier. In our view, the upside exit out of the range may have turned the short-term picture somewhat positive.
If the bulls are strong enough to distance themselves from the 7845 level, we may see them pushing towards the 8200 hurdle, which is marked as a resistance by the high of November 20th. If they are not willing to hit the brakes around there either, a break higher could set the stage for the peak of November 17th, near 8515.
Turning attention to our short-term oscillators, we see that the RSI shows signs of topping above its 70 line, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. These indicators point to slowing upside speed and suggest that a small pullback may be looming before the bulls decide to take charge again and perhaps push above 7845.
In order to abandon the bullish case, we would like to see a dip back below 7400. In our view, this may confirm the crypto’s return back within the aforementioned range and may allow declines towards the 7225 level. Another break, below 7225, could extend the slide towards the lower end of the range, at around 6815.
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