Watch
- Bitcoin created a "spin" candle on Wednesday, pouring cold water over the optimism generated by the breaking of the triangle witnessed earlier this week.
- The top has made today's UTC fundamental. A close above Wednesday's high of $ 10,834 is needed for the continuation of the recent rally.
- A UTC close below the top of the top of $ 10,378 would change the risk in favor of deeper losses below $ 10,000.
- A daily bearish close should not be ruled out, since the top represents the buyer's exhaustion.
The top cryptocurrency by market value picked up a bid at lows below $ 10,400 around 1:45 p.m. on Wednesday and rose above $ 10,800 at 8 p.m. UTC, according to Bitstamp data.
Tuesday's high volume movement had set the tone for a test of the bearish low of $ 10,956, as discussed yesterday.
However, the upward movement sold out at a maximum of 15 days of $ 10,834 in US trading hours yesterday and prices fell at the close of UTC at $ 10,586, only $ 0.30 percent on the day.
Essentially, BTC created a rotating candle on Wednesday, consisting of a small body, representing marginal gains or losses on the day and long wicks, representing a bidirectional price action.
The top is widely considered a sign of indecision in the market, since neither bulls nor bears are in a dominant position.
In such situations, experienced operators often wait on the sidelines until strong directional movement arises. So far, BTC has shown no signs of directional strength: the cryptocurrency is consolidating around $ 10,600 in Bitstamp.
Daily chart
The rotating candle has taken the shine to the breaking of the triangle witnessed earlier this week and has made today's UTC fundamental.
A close above the maximum of the $ 10,834 candle would imply a continuation of the rebound from the recent low of $ 9,320.
A more reliable indicator of bullish revival would be a UTC close above the highest low of $ 10,956 created on August 20. A bullish close above $ 10,956, if confirmed, would open the doors to $ 12,000.
Meanwhile, a close below the top of the top of $ 10,378 would indicate that the recovery from the recent low of $ 9,320 has ended and the bears have regained control. That could generate a settlement again at $ 9,755 (August 22 low).
With the moving average convergence divergence histogram (MACD) that reports bullish conditions (a reading above 50), observers may be tempted to predict a bullish daily close.
However, it may be silly to rule out a bearish close, as the spinning candle has appeared after a $ 1,500 rally, and indecision predominantly represents bullish depletion. If the bulls were strong, the top would not have appeared. Therefore, a correction could be just around the corner.
BTC also looks heavy on intraday charts.
Hourly chart
BTC has found acceptance below the uptrend line, having faced a rejection of around $ 10,800 twice in the last 48 hours.
More importantly, a fall in the channel that was seen yesterday did not accelerate the previous upward movement, a sign of bullish exhaustion. The 50-hour moving average is also beginning to peak (shed bullish bias).
As a result, you cannot rule out a 100-hour MA rollback, currently at $ 10,247.
Disclosure: the author has no cryptocurrency assets at the time of writing.
Bitcoin image via Aleksi Räisä on Unsplash; charts by Trading View
This article is republished from dailycoin.info.
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