Bitcoin has broken the 200-day moving average but has run into heavy resistance. If the pattern created on April 2, 2019 is to repeat itself, we need buyers to come in strong for the remainder of the day.
When comparing this move to the similar move back on April 2, 2019, we see the RSI is on track but needs to rise above 70, Stoch RSI is continuing to climb but should be pegged at 100 which it is not. The ADX & DI is showing a very different story. While the bearish line is dropping it is currently 6 points above where it was at this point in the previous move, the bullish line looks to be slowing down where previously it was rapidly accelerating upward, and the trend line is moving down not up. It appears that resistance is to high for this upward move to continue.
The best scenario I see would be for buyers to come in strong. This would push Bitcoin up to the 10K support/resistance line and confirm the top of a new trend pattern with 3 points. If buyer action does not pickup, I expect a consolidation period with some possible price declines. If we have a candle close below the 200 day Moving Average, we may be headed down to test 6,400 again.
When comparing this move to the similar move back on April 2, 2019, we see the RSI is on track but needs to rise above 70, Stoch RSI is continuing to climb but should be pegged at 100 which it is not. The ADX & DI is showing a very different story. While the bearish line is dropping it is currently 6 points above where it was at this point in the previous move, the bullish line looks to be slowing down where previously it was rapidly accelerating upward, and the trend line is moving down not up. It appears that resistance is to high for this upward move to continue.
The best scenario I see would be for buyers to come in strong. This would push Bitcoin up to the 10K support/resistance line and confirm the top of a new trend pattern with 3 points. If buyer action does not pickup, I expect a consolidation period with some possible price declines. If we have a candle close below the 200 day Moving Average, we may be headed down to test 6,400 again.