Bitcoin
$48,132.17-0.17%
Ethereum
$3,582.39-1.53%
XRP
$1.10-1.54%
Cardano
$2.44-1.69%
Polkadot
$36.68+2.10%
Stellar
$0.332600-1.53%
Dogecoin
$0.253918+3.83%
Chainlink
$30.05-4.99%
Uniswap
$25.92-4.26%
Polygon
$1.39-4.79%
Litecoin
$186.67-2.13%
Bitcoin Cash
$642.79-0.08%
Algorand
$2.10+4.25%
Cosmos
$37.07+14.71%
Wrapped Bitcoin
$48,124.38-0.33%
Filecoin
$84.16-6.05%
The Graph
$0.855629-4.31%
Tron
$0.120404+3.61%
Ethereum Classic
$58.37-1.24%
Aave
$388.31-4.79%
Tezos
$6.77+0.06%
NEO
$51.11-2.59%
EOS
$5.08+0.27%
Monero
$267.01-1.23%
IOTA
$1.52-4.47%
BitTorrent
$0.004081-0.61%
Waves
$30.50-5.88%
Bitcoin SV
$158.32+0.15%
Maker
$2,924.77-6.98%
Dash
$207.75-4.12%
Decred
$146.84+2.23%
Decentraland
$0.850139-2.36%
ICON
$2.01-3.06%
NEM
$0.189702+1.01%
Zcash
$138.81-2.79%
Qtum
$12.74-0.99%
NuCypher
$0.335731-1.64%
Yearn Finance
$34,824.20-4.73%
Bitcoin Gold
$67.09-3.27%
OmiseGO
$8.68-2.85%
Basic Attention Token
$0.775494-1.99%
0x
$1.12-2.99%
Fetch.ai
$0.907245-3.01%
Paxos Standard
$0.990000-0.99%
Ren
$1.01-10.83%
Bancor
$4.21-3.31%
Band Protocol
$9.73-0.88%
Siacoin
$0.018839-2.49%
Kava.io
$6.31-1.49%
Nano
$5.70-2.81%
Loopring
$0.470577-5.42%
Storj
$1.41-1.70%
Civic
$0.529890+1.53%
Lisk
$3.64-4.10%
Numeraire
$44.40-2.09%
Orchid
$0.377680-2.14%
PAX Gold
$1,770.03-1.52%
Augur
$26.51-0.62%
Aragon
$6.01-5.57%
Enzyme
$117.30-8.19%
district0x
$0.178147-5.28%
Kyber Network
$1.98+4.92%
SingularDTV
$0.001254-5.81%
Tether
$1.00-0.02%
USD Coin
$0.999957-0.02%
Dai
$1.00-0.02%

Bitcoin Price Building Relief Rally, But Resistance Hurdles Await

Currently trading sideways, bitcoin still looks set for a corrective rally as long as prices remain above $6,000.

Jun 26, 2018
CoinDesk Insights

Bitcoin (BTC) narrowly missed scaling a key resistance level on Monday, but remains on the hunt for a corrective rally, the technical studies indicate.

The cryptocurrency flashed signs of bearish exhaustion yesterday, having defended the $6,000 mark over the weekend. As discussed, a close (as per UTC) above $6,250 (Doji candle high) yesterday would have likely set the tone for a stronger corrective rally.

While prices did reach a high of $6,341 yesterday, BTC closed (as per UTC) at $6,247. So, technically speaking, the short-term bull doji reversal is yet to be confirmed.

However, a rally may still be on the cards, as prices are holding well above the key support of $6,000 (February low) and the indicators have diverged in favor of the bulls.

On the other hand, stiff resistance lined up in the $6,400–$6,800 range could complicate the recovery.

At press time, BTC is trading at $6,220 on Bitfinex, having clocked a high of $6,281 earlier today.

Daily chart

Although BTC failed to close above $6,250 yesterday, the green candle has established a bullish price-relative strength index (RSI) divergence (lower lows in price and higher lows in the RSI).

Meanwhile, the money flow index (MFI) – a momentum indicator that incorporates both price and volume into its calculations – has also created a higher low as opposed to lower lows in price (bullish divergence). The MFI is rising too, indicating an increase in buying pressure.

Clearly, the indicators are aligned in favor of a corrective rally in the short-term. That said, the bulls face an uphill task as a number of key resistance hurdles await:

  • $6,417 (10-day moving average)
  • $6,425 (April low)
  • $6,500 (April 6 low)
  • $6,533 (March 30 low)
  • $6,680 (falling channel resistance)

Still, the longer outlook remains bearish, with bitcoin still trading in a falling channel.

Below $6,000 (February low), major support levels are located at:

  • $5,755 (Sunday's Doji candle low)
  • $5,400 (November low)
  • $5,090 (rising wedge breakdown target)

So, there is a lot of room to the downside and plenty resistance to the upside, and the bulls' task doesn't look an easy one.

View

BTC remains on the hunt for a corrective rally to $6,680 (falling channel hurdle). A daily close (as per UTC) above that level would confirm a short-term bearish-to-bullish trend change and would open the doors to the 50-day moving average, currently located at $7,464.

On the downside, a close below $6,000 (February low) would put the focus back on the long-term bearish technicals and boost odds of a drop toward $5,40 (November low).

Hurdles 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...