Bitcoin price prediction: Approaching its technical target on today's slide
|- Another bearish day in the Crypto board, following the technical script
- The charts propose a possible divergence that would increase the bullish potential
Asian trading has left the Crypto board painted in red, although it hasn't changed the technical picture at all. BTC/USD is trading at $8122, leaving today's low at $7928.
BTC/USD 4H chart
Bitcoin is confirming the scenario set during the week, and today is taking us to the last steps of this episode. The final target of the current price action is at $7856, leaving the path wide open after having reached such point. If buyers appear at such point, which looks likely, and a new bullish leg starts there, the next chapter will be developing on superior levels that feature several resistance levels. These are the key areas to note: $8390 as the price congestion resistance, followed by the 50-EMA at $8500, another cluster of key open and close candlesticks at $8800, the 200-SMA at $8870 and the 100-SMA at $8970. As the side-show levels, we might find $9160 and $9650 above there, with the final target at the popular $10000 mark that has already seen some battles in the past.
In case of another bearish leg, below the key $7850 level, we would be getting into an intriguing territory. Expect heavy falls in such case, as BTC/USD would get a negative signal to traders, with very few key levels to hold such bearish action. The first target would be at $7400, followed by $7100, $6863 and finally the area located between $6550 and $6440. These levels and an extreme target located down at $5950 are price supports, levels that have been significant in the past. There are no moving averages below the current price, so these are the only supports where the price can hold on.
MACD in the Bitcoin 4-hour chart shows a favorable profile for a cross to the upside, with divergence against the price. This is a very effective pattern, which in case of not being accomplished, might give the doors open to more aggressive moves from the other side. In the daily chart, the MACD is still above 0, so there is some bullish bias out there.
Directional Movement Index in the same chart is also showing how the sellers have been retreating in this last bearish leg, weakening the outlook for more falls. Buyers are not showing any interest, for now, so we must remain vigilant just in case they react during today's session.
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