Bitcoin Analysis: averts coin split, bullish above $2710

Omkar Godbole FXStreet Contributor

Bitcoin once again found support of the Gann Fan 2/1 line yesterday. The virtual currency ended on a weaker note at $2754 and was last seen trading around $2760 levels. The Gann Fan line is seen offering support round $2710 levels today.

The currency failed to rally over the weekend, even though the miners signaled their support for the Bitcoin Improvement Proposal (BIP) 91, avoiding a split of Bitcoin into two blockchains. The support for BIP 91 reached 100% on Friday, well exceeding the required 80% threshold.

As per coinmarketcap.com, Bitcoin hasn’t really moved much during the last 24 hours. Other virtual currencies - Ethereum, Ripple are flat lined as well. Litecoin shed 2.06%. The total market cap of the virtual currencies stands at $94.54 billion. The BTC dominance rate is stagnant around 47.5%.

Technicals

Resistance

$2848 (previous day’s high)
$2957 (Thursday’s high)
$3000

Support

$2910 (Gann Fan support)
$2608.27 (supp on 4-hour chart)
$2436 (upward sloping 4-hour 50-MA)

Daily chart

We await range breakout. The odds of a bullish break are high, given the RSI has breached the downtrend line and the bears have failed for three trading sessions to cut through Gann fan 2/1 support.
A rebound from $2710 followed by a move above $2848 would open doors for fresh record highs above $3000.
On the downside, only a daily close below $2608 would revive the bearish view.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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