Bitcoin Price Analysis: BTC remains bullish but lacks momentum
- Bitcoin trades over 4% higher on Tuesday but volume is currently thin.
- 7K is the next major level on the upside but the previous wave high of 6,866.10 needs to be broken first.
BTC/USD 1-hour chart
Bitcoin is still looking pretty bullish toward the end of the US session on Tuesday. The price trades around 4% higher at 6,750.00 and could still hit the psychological 7K target. Overall we are still in the retracement phase from a major fall. On March 12th the price of BTC/USD fell around 38.81%. At the moment the price has pulled back around just over a 3rd of the price drop.
Looking at the hourly chart closer now, the price is trading above both moving averages. The RSI is also positive which is a good sign. Looking at the candlesticks it seems that the size of the up candles is dropping which could mean that momentum is slowing down. The green horizontal line on the chart is the next support one (6,437.50). Remember that the price is still in a downtrend on the higher timeframes so counter-trend trading is very dangerous so keep the risk tight if this is your strategy.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
