- BTC/USD pushed for more gains above $5,500 and later broke above $6,000.
- It is clear that this is a bull market and higher correction is imminent.
Since Bitcoin broke above the long-term trend line in March, it has remained in an uptrend. The daily chart shows the trend of an asset that has already found a bottom and is getting ready for an upsurge in the coming sessions. Moreover, the break above the 23.6% Fib retracement level between the last drop from $6,558.30 to a $3,18303 gave way to a strengthened upward correction that stepped above the 200 exponential moving average (EMA). For at least eight months the price traded below EMA200 amid the bear dominance.
BTC/USD daily chart
However, the break above the indicator marked the continuation of a bullish trend that commenced after Bitcoin trade 2018 lows at $3,149. Over the last four weeks, Bitcoin has focused on breaking critical barriers to the upside including the 61.8% Fib retracement level at $5,251.13. BTC/USD pushed for more gains above $5,500 and later broke above $6,000. The bulls formed a high at $6,098.
The chart shows Bitcoin trending up in a rising channel while supported by the EMA200, the confluence of the 100 SMA and the 38.2% Fib level at $4,500. Further support observed at $4,000 (23.6% Fib) level).
Currently, the buyers are fighting to keep the price above $6,000. It is clear that this is a bull market and higher correction is imminent. Besides, the RSI is in an upward motion within the overbought region. The bulls are taking advantage of the absence of acute selling pressure to push for gains while ignoring the overbought levels. Bitcoin only needs to break above $6,100 to encourage more buying entries that are likely to test $6,500 supply zone which means correction to $7,000 is well within reach.
Bitcoin Key Technical Indicators:
RSI daily: 75.79
EMA200 daily: Below the price (indicates bullish market).
100 SMA daily: $4,500.
Resistance levels: $6,098.57 (intraday highs), $6,500 and $7,000 (medium-term hurdle).
Support areas: $6,000, $5,674.85, 61.8% Fib level and $5,000.