Bitcoin (BTCUSD) Early Update: One More Bounce...Will It Sustain?

Analysis

Sorry guys for the late update was occupied yesterday and hence the reason for this late update on BTCUSD. Looks like we had another bounce around $6128 right at the 1.27 fib extension based on the previous downward move. But the question is whether this bounce will take us up the chart or will it end up as a dead cat bounce which may take us lower? The only thing that seems positive and bullish is monthly chart. Things look pretty confusing amidst all the news and other sentiments that we went through beginning late December.The next question that most of us must have are we gonna have a strong move back up near the all time highs at $20K and over? The answer is lower we go we are going to face a lot more resistance. So lets see what the chart has to say for the day.

The market on a 4hr (at 6:45 IST) RSI Stochastic indicates a overbought market on a 80:20. Where as the hourly moved across in the overbought market to the present value somewhere around 8000. Presently I am still sceptical on this move up, whether it would sustain despite the 9 on TD Sequential and a buy signal on the daily. But this move looks promising as we had a $1200 price range on yesterday's candle close. What we want to see is a close above 8K on the daily to decide the next move or we have a higher low and we see a bounce again. If this move does not hold or we have a double bottom at $6128 ($6k level) we are looking downward targets of 5K and lower.

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