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July 19, 2018 @ 20:24 +03:00
Bitcoin’s (BTC) minor price pullback yesterday has likely recharged the bulls for a rally towards $8,000, technical charts indicate. The leading cryptocurrency has spent a better part of the last 15 hours trading in the $7,240–$7,440 range, having clocked a 40-day high of $7,588 at 18:00 UTC yesterday.
Moreover, BTC was looking overbought at multi-week highs, hence a minor correction was expected. More importantly, the price pullback and the subsequent consolidation, when viewed against the backdrop of the high volume inverse head-and-shoulders breakout, indicate that BTC has likely gathered steam for a more sustainable rally towards $8,000.
At press time, BTC is changing hands at $7,400 on Bitfinex – up 0.2 percent on a 24-hour basis. While BTC’s rally has stalled in the last 24 hours, the bias remains bullish since prices are holding well above the inverse head-and-shoulders neckline support (former resistance) of $6,838. The relative strength index (RSI) is hovering above 50.00 (in bullish territory). The 5-day and 10-day moving averages (MAs) are trending north, indicating a bullish setup. The chart also shows a bullish crossover between 5-day and 50-day MAs. Clearly, bitcoin remains on the hunt for $8,000 and the short duration chart indicates the move could happen in the next 48 hours.
Bitcoin’s price pullback last night has likely recharged the engines for a rally to $8,000 and the psychological resistance could be put to test in the next 48 hours.
The short-term outlook remains bullish as long as BTC is trading above the inverse head-and-shoulders neckline of $6,838.
A deeper technical correction, if it occurs, could be short-lived as the daily chart and the hourly chart are biased towards the bulls.