Bitcoin Chart Analysis: Bulls to Return as Prices Edge Higher
Bitcoin News and Talking Points
- Support level sets up token for further gains.
- A break and close above $9,400 may encourage more buyers back into the space.
IG Client Sentimentshows retail are 71.6% long Bitcoin, but recent positional changes may herald higher prices.
Bitcoin (BTC) Likely to Move Higher in The Short-Term
After hitting a recent low of $6,420 at the start of April, the largest cryptocurrency has moved higher over the month and currently trades around $8,150. The bear phase from the start of the year has shaken a lot of loose longs out of the market with the number of unique bitcoin addresses nearly halving in the last four months.
While traders may still be predominantly long, support may be seen on the charts around the recent low at $6,420, at the same level as the crossover with the downtrend line from mid-December. This level should now hold in the short-term - a small reverse head and shoulders pattern formed between March 29 and April 12 confirms an upward bias – leaving BTC to make a run for the next resistance level at $9,385, the 61.8% retracement of the September – December 2017 rally. An upward trend line from the February 6 low at $8,440 is the first obstacle to the Fibonacci target.
We will be discussing a range of cryptocurrency charts and price set-ups at our Weekly Cryptocurrency Webinar today at 12:00pm.
Bitcoin (BTC) Price Chart in US Dollars(August 10, 2017 – April 18, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your opinion on Bitcoin – bullish or bearish? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at email@example.com.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.