Bitcoin just made a strong rally after broken out the technical resistance level at 13,000 USD/BTC and have reached the highs at 19,497 USD/BTC (Bitfinex price data). The up momentum has been ceased now to push BTC/USD for a next highs, but has been correcting to lower price level to 17,850 USD/BTC at the time we update this post.
Some supports area for BTC/USD has been detected in a price range from 15,683 – 16,000.
In case Bitcoin lost that support range mentioned above, a further lower correction could be occurred again. In this sense we can say that the market just make a rally to push the price to the earlier highs which was made some years ago, but the market still lacks the courage to push BTC/USD to a new historical highs due to many reasons.
At the D1 TF as wee see that Stochastic and RSI are declining at their top with confirmation of a sell of BTC recently, it is indicated for a type of profit taking buy buyers.
The 200 SMA and 65 SMA are still in a stronger uptrend with confirmation of the price actions for higher lows and higher highs. Such as a highs, market usually takes a pause to find support area on the one hand, and on the other hand to correct to the lower price zone to tank anew up momentum technically. Hence, trading strategy now can be applied on the both sides, short for short term, long for middle and long term. But for the buyers side, we need to keep waiting for best entry price at good support zone, instead to jump in the market at the moment.
We will keep monitoring about BTC/USD in the upcoming events soon.