Bitcoin doesn’t seem to stop. It jumped to a three-week high of $7,128 and crossed well above the 100 day moving average hurdle on closing. On Aug 14 it was touching the low of $5,859 and now on Aug 29 it has breached the $7,000 limit. However, the 21 percent price rise in the last two weeks is looking overstressed, as per the short-duration technical studies. Bitcoin may have tough time maintaining the safe zone of $7,160 – $7,180 and could suffer a minor pullback after extending the ongoing rally.
This current rally has a bullish trend lately and even over 100 coins felt the same positive trend. Bitcoin has to move further in the ascending trend line in order to maintain its current pace. Bitcoin has pulled back from its yesterday highest at $7,128 and appears to consolidate around $7,000 to $7,100 which was kind of predicted by analysts. RSI and Stoch spent most of the day bouncing around.
One hour chart
The 5-hour exponential moving average (EMA) has dropped below the 10-EMA and a mild drop below $7,000 won’t be surprising as a mild drop after rapid gain is usual in forex. Bitcoin is likely to rebound back to today’s range as the cryptocurrency remains in the ascending trend with the longer term moving average below. The recent upside move brought BTC $7110.32 +0.06% above the 200-day MA and the 20-MA is on the verge of crossing above the 200 MA while the 50 and 100-day MA have already crossed. BTC will encounter resistance at $7,128, $7,165 and $7,490. In the event of a reversal, BTC has spent the day bouncing off softer supports at $7,000, $7,030 and $7,050.