- Bitcoin’s three-months target is at levels not less than $10,000.
- The short term bearish bias trend means that Bitcoin could return under $7,000.
Bitcoin has slowed down the action above $7,000. The impressive bullish momentum mid this week stalled short of $7,500. A reversal from the weekly high has been contained above $7,000. Trading at $7,143, the path of least resistance remains downwards.
BTX/USD daily chart
The 50-day Exponential Moving Average Average (EMA) and the EMA 200 are maintaining the position above the price at $$7,695 and $8,295, respectively. Moreover, the gap between the two moving averages is widening, which signals that the bears are gaining strength.
From a technical perspective, The Relative Strength Index (RSI) shows suggest that Bitcoin has a short-term bias. Recently, the indicator shot upwards from the levels slightly under 30 to 47.89. An ongoing gradual slope emphasizes the risk of Bitcoin retesting $7,000 and $6,500 respectively.
However, a conflicting scenario suggests that the consolidation will culminate in yet another incredible correction above $8,000. In other words, the falling wedge pattern is likely to nurture a bull rally with the potential of hitting highs close to $10,000. For this rally to occur, Bitcoin needs a catalyst, increasing volume, and positive technical levels. In retrospect, this is a long term prediction that could take place in three months ahead of Bitcoin halving in May 2020.
Bitcoin Key Technical Levels
Spot rate: $7,144
Relative change: -13
RSI: Gradually slopes downwards indicating a growing sellers’ grip.
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