Bitcoin made another positive move on the daily chart with around $200 rise in price. The price of Bitcoin [BTC] at 5: 00 hours UTC on 17th April is $5252. It is trading 3.29% higher on a daily scale.
The bears and the bulls are caught between the tussle of an impending bull cycle after more than a year-long bear movement and bottom finding in prices. However, the technical analysis still suggests weakness still persists.
‘Evening Star’ Formation on Two Time Periods
The evening star is a multiple candlesticks pattern developed over three trading periods. The formation of an evening star during bullish move signifies trend reversal towards the bears. An Evening star is being formed both on the daily and weekly scale on the BTC/USD chart.
On a daily scale, if Bitcoin closes near its opening at $5201, indecision in the market can be suggested on a daily scale as well. Hence, end ending of today and price action tomorrow will be crucial for the formation of the multiple candle-stick patterns including the evening star.
The 200-Day Moving Average is looking to converge with the 50-Day Moving average which might signal a trend reversal. The Relative Strength Index (RSI) on the daily scale is squirting near the over-bought region at 70. However, it seems to have corrected by more than 21 points since its surprise bull run on 2nd April.
MACD difference on the daily scale is about -10 between 26 and 12-Day periods, signaling indecision as the cross over is of the periods is temporarily held.
It also seems to be forming an evening star on the weekly scale as the price was followed by a Doji, where the closing of the week was near the opening. Hence, the two out of three candle-sticks has been confirmed.
The RSI on the weekly scale is 58 which is poised between over-bought and over-sold region. However, the RSI was this high during the second week of 2018 when the price of Bitcoin was above $11,000. The price seems to be consolidating between the 200-Day and 50-Day moving average.
Furthermore, the 50-Day moving average line can act as a big resistance which Bitcoin [BTC] might attempt to break in the near future. Hence, while bearish movements are on the card according to macro signals Bitcoin still might look to re-test the $5546 level.
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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