Bitcoin price analysis shows that bullish momentum is building as BTC reclaims the psychological $8K level. But is a new YTD-high next?
Bitcoin Price Analysis: Daily Chart
Bitcoin’s price continues to track nicely inside an ascending triangle pattern, after bulls successfully springboarded off the $7,500 level yesterday. Now, their next challenge is to close above the psychological $8K level which currently stands between them and the YTD-high at $8,380. Can buyers keep the momentum going? Let’s take a look.
On the daily BTC/USD chart we can see the ascending triangle that we’ve been looking at this week, is continuing to form well after BTC made a strong recovery off the uptrending pattern support yesterday.
Right now, the $8,000 level appears to creating some temporary friction in the uptrend as selling pressure most likely from short-term traders and auto-trading bot orders slow Bitcoin’s ascent.
Bearish signals on the MACD indicator have continued to get worse since yesterday’s analysis, despite Bitcoin’s price jumping 5.24% in the last 24 hours. Selling volume on the histogram is growing and the 12-MA has yet to show any sign of converging above the 26-MA.
We should note however, that the MACD is a lagging indicator so convergence/ divergence signals often trail behind the current price activity. If bulls are able to close above $8K today, then we should expect to see a bullish 12/26 MA convergence appear during the early hours tomorrow.
Should BTC end the day beneath $8,000 however, then we could see another bearish breakout take over, which pushes Bitcoin towards the uptrending support below, somewhere near the $7,600 mark.
Looking at the RSI we can see that this indicator also remains bearish,