According to Omkar Godbole’s analysis – available on Yahoo!Finance – it’s too early to call bull reversal the bitcoin behavior. Check it now:
Bitcoin’s (BTC) bulls have staged a defense following practically a month of losses, but a short-term bullish trend reversal is just not however confirmed, the technical charts indicate.
As of writing, the cryptocurrency is up 5 percent at $7,487 on Bitfinex, possessing clocked a four-day high of $7,560 earlier right now.
A minor corrective rally had been anticipated, courtesy of a bullish price-relative strength index divergence within the short duration charts observed during the last two days.
Further, the resulting bullish outside-day candle engulfed the price action noticed on Monday and Tuesday, and has neutralized the immediate bearish outlook.
Because the name suggests, the bullish outside-day indicates a bearish-to-bullish trend change. Nevertheless, analysts and traders normally wait for confirmation – good follow-through – ahead of calling a reversal.
So, a short-term bullish trend reversal will be confirmed if bitcoin requires out the descending (bearish) 10-day moving typical (MA) hurdle within a convincing manner. At present, the 10-day MA is located at $7,562 and is capping the upside in rates, as observed inside the chart above.
Meanwhile, the 50-candle MA hurdle inside the 4-hour chart under is also proving a challenging nut to crack.
A higher volume break above the 50-candle MA of $7,520 could see bitcoin attack the descending trendline hurdle, currently positioned at $7,930.
That mentioned, costs will probably revisit $7,one hundred if bulls are unable to cross the key moving typical hurdle inside the subsequent few hours.
The chart also shows the main moving averages (50,100 and 200) are trending south, a lingering bearish setup. So, a convincing break above the 50-candle MA will be less complicated mentioned than accomplished.