The bullish week of Bitcoin closed on a high on Tuesday as Bitcoin continued to stay stable above the $5200 mark. The swift rise occurred on 2nd April at around 5: 30 hours UTC, when Bitcoin broke above the $5000 mark to record an instantaneous high of 21.6%.
The price of Bitcoin [BTC] at 5: 00 Hours on 10th April 2019 is trading at $5236. It is trading 30.9% higher from the $4000 mark it had traded during the end of March. The traders have been looking for a correction back to $4200. However, Bitcoin (BTC) has continued to trade above $5000 at the end of the week.
Bitcoin Possible Cup and Handle Formation
A cup and handle pattern can be observed on the daily chart on Bitcoin (BTC). A huge resistance can be seen above the $5670-$6000 levels. However, if Bitcoin completes the pattern the possible target would around $8520. Moreover, the timeline of the break-out is unclear; it can be expected sometime in the next two months.
However, caution must be taken near the $4200, as a break below it could trigger the bearish momentum again. Bitcoin (BTC) has also recorded the most over-bought level since its run in 2017 according to the Global Strenght Indicator (GTI).
The RSI signal on the daily chart has entered the over-bought region – 89
However, it has maintained the same level on a daily for over a week. Moreover, on the 4-hour chart is has entered the neutral region between over-bought and over-sold territory.
The RSI on the 4-Hour chart of Bitcoin is 62
On the weekly scale, Bitcoin (BTC) has moved above the 200-Day Moving Average which is indicative of a bullish action as well. The RSI signal on a weekly level is 53, which is also in the neutral zone between over-bought and over-sold region.
Do you think Bitcoin (BTC) will continue its short term bullish run or move back to $3000 level? Please share your analysis with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com