Bitcoin
$43,272.10+1.43%
Ethereum
$3,060.88+5.07%
XRP
$0.943593+0.56%
Cardano
$2.26-4.75%
Polkadot
$29.08-3.58%
Stellar
$0.278325+0.44%
Dogecoin
$0.206678-1.41%
Chainlink
$24.55+2.92%
Uniswap
$24.30+24.73%
Polygon
$1.13+0.74%
Cosmos
$39.67-0.46%
Algorand
$1.72-0.76%
Litecoin
$152.09-0.06%
Bitcoin Cash
$511.34-0.97%
Wrapped Bitcoin
$43,274.06+1.42%
The Graph
$0.684643+0.60%
Filecoin
$58.35-3.58%
Tron
$0.088204-2.65%
Ethereum Classic
$47.37-0.44%
Tezos
$6.79-4.42%
Aave
$294.21+6.67%
Monero
$232.51-2.09%
EOS
$4.05+0.81%
NEO
$38.94-0.29%
IOTA
$1.20-2.96%
BitTorrent
$0.003212-1.03%
Bitcoin SV
$129.87-3.79%
Waves
$23.85-1.72%
Maker
$2,364.24+4.64%
Dash
$163.09-0.89%
Decentraland
$0.713411+3.69%
Decred
$114.13-1.19%
ICON
$1.66+6.94%
NEM
$0.148636+0.90%
Zcash
$112.14+1.92%
OmiseGO
$9.12+2.89%
Paxos Standard
$1.00-0.03%
Yearn Finance
$30,688.93+1.76%
Ren
$1.11+6.99%
NuCypher
$0.277294-6.22%
Qtum
$9.59-0.77%
Bitcoin Gold
$52.48-0.81%
Basic Attention Token
$0.653189+1.71%
Fetch.ai
$0.830283-2.30%
0x
$0.903706+1.09%
Kava.io
$5.73-2.41%
Bancor
$3.54+2.56%
Band Protocol
$7.44-0.66%
Siacoin
$0.015077+2.53%
Nano
$4.57-2.45%
Loopring
$0.373203-1.75%
Storj
$1.10+1.17%
Numeraire
$41.72-2.06%
Civic
$0.441940-2.45%
Lisk
$2.81-4.41%
Orchid
$0.320962+0.66%
PAX Gold
$1,760.19+0.19%
Enzyme
$143.62+7.24%
Augur
$21.09-2.46%
Aragon
$4.58-5.77%
district0x
$0.149473-1.32%
Kyber Network
$1.46+1.73%
SingularDTV
$0.001200-3.26%
Tether
$1.00-0.03%
USD Coin
$1.00-0.04%
Dai
$1.00-0.03%

New Resistance Could Cap Bitcoin's Upside Price Potential

Bitcoin's bulls are struggling to force a rally, despite a still-favorable short-term set-up on the technical charts.

Jun 21, 2018
CoinDesk Insights

Bitcoin's (BTC) bulls are struggling to push prices higher, despite a still-favorable short-term set-up on the technical charts.

Bitcoin rose to a six-day high of $6,580 on Monday on Bitfinex, adding credence to indications that the cryptocurrency could be in for a relief rally.

The bullish bias has strengthened further in the last two days too, courtesy of a bullish Bollinger band breakout and a bullish crossover between the 5-day and 10-day moving average (MA). Furthermore, bitcoin refused to embrace the negative narrative on Wednesday after the $31 million hack of South Korea's Bithumb exchange, indicating that the sellers are likely running dry.

Despite all this, though, the cryptocurrency has struggled to find acceptance above $6,800 in the last 72 hours, as seen in the chart below.

Daily chart

Bitcoin printed intraday highs above $6,800 in the last three trading days (as per UTC), but still closed well below the $6,800 mark.

The repeated failure to scale $6,800 in a convincing manner forces us to consider the possibility of the bears making a comeback, although the charts do not see that happening while BTC is holding above $6,550.

At press time, BTC is changing hands at $6,730 on Bitfinex.

4-hour chart

The chart shows BTC has created a rising wedge –  a bearish continuation pattern. A break below $6,550 (rising wedge support and 50MA support) would put the bears back in the driver's seat and allow a drop to $6,000.

A drop below $6,550 would also push the relative strength index (RSI) below the ascending trendline, further strengthening the bear case.

View

  • The immediate outlook remains bullish as long as bitcoin is holding above $6,550.
  • On the higher side, stiff resistance is noted at $6,943 (100-candle MA on 4-hour chart) and $7,000 (psychological hurdle).
  • A downside break of the rising wedge pattern (below $6,550) would open the doors to $6,000.
  • A daily close (as per UTC) below $6,000 would expose the next major psychological support of $5,000.

Bitcoin image via Shutterstock

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...