Loading...
by Charalambos Pissouros

Bitcoin Surges and Hits Resistance Near 8900

BTC/USD rallied over the weekend, opening today above the key hurdle of 8400, and hitting resistance slightly above 8900, marked near the high of May 14th, 2018, as well as the inside swing low of the 9th of that month. The advance confirmed a forthcoming higher high on both the 4-hour and daily charts and thus, we would consider the near-term outlook to be positive.

We would expect the bulls to take charge again soon and perhaps push the crypto above 8900, probably aiming for the 9370 territory, defined by the highs of May 9th and 10th, 2018. However, before the next positive leg, the buyers may decide to take a small break, allowing the price to correct a bit lower, perhaps  to test the 8400 area as a support, or even the 8100 zone, marked by the inside swing high of May 21st, this year.

Our short-term momentum indicators detect upside speed, but they also support our view for a small setback. The RSI surged above 70, but it has started topping within its extreme zone. The MACD, although above both its zero and trigger lines, shows signs of slowing down as well.

Having said all that though, in order to start examining the case of a much deeper correction, we would like to see a clear break below the 7510 barrier, or even better, the psychological zone of 7500. Such a break would confirm a lower low on the 4-hour chart and may set the stage for declines towards 6865, marked by an intraday swing low formed on May 17th. Another break, below 6865, could pave the way towards the low of that day, at around 6475.

BTC/USD Bitcoin 4-hour chart technical analysis

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

70% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT