Bitcoin volume increasing, suggesting upcoming breakout
Today Bitcoin is trading under highest volume of the past 19 days, and currently it stands at 27k BTC. Yet, the day is not over and volume might increase even further. Now BTC/USD is testing 78.6% Fibonacci support at $6258, which so far is being rejected.
Overall, there is no clear direction established by the Bitcoin, as it remains above the $6000 support. Fibonacci retracement indicator, applied to the uptrend trendline breakout, shows that Bitcoin rejected 38.2% Fibs at $6100 where it produced a double bottom.
BTC broke below the short-term uptrend trendline today, although the Fib support remains respected by the market participants. It would be important to see the daily closing price. Close below $6258 would send Bitcoin towards $6000 area once again and break below $6k, might result in price drop towards the $5535 support that is 23.6% Fibs.
While daily close remains above the $6258, price is expected to rise towards the $6560, $7020 or $7670 resistance level. A different scenario will most like take place if daily close will be below the $6258. In that case, BTC can continue moving lower, potentially testing $6000 once again. However, break and close below $6k can extend the downtrend towards the $5535 support level that is 23.6% Fibonacci retracement level.
In short, there is no clarity on the direction of the Bitcoin, whether, short, medium or a long-term. Nevertheless, as the volume is currently increasing, this tendency is likely to continue and a breakout should be expected. Only time will tell if it is going to break to the downside or the upside.
Overall, there is no clear direction established by the Bitcoin, as it remains above the $6000 support. Fibonacci retracement indicator, applied to the uptrend trendline breakout, shows that Bitcoin rejected 38.2% Fibs at $6100 where it produced a double bottom.
BTC broke below the short-term uptrend trendline today, although the Fib support remains respected by the market participants. It would be important to see the daily closing price. Close below $6258 would send Bitcoin towards $6000 area once again and break below $6k, might result in price drop towards the $5535 support that is 23.6% Fibs.
While daily close remains above the $6258, price is expected to rise towards the $6560, $7020 or $7670 resistance level. A different scenario will most like take place if daily close will be below the $6258. In that case, BTC can continue moving lower, potentially testing $6000 once again. However, break and close below $6k can extend the downtrend towards the $5535 support level that is 23.6% Fibonacci retracement level.
In short, there is no clarity on the direction of the Bitcoin, whether, short, medium or a long-term. Nevertheless, as the volume is currently increasing, this tendency is likely to continue and a breakout should be expected. Only time will tell if it is going to break to the downside or the upside.
Comment:
Bitcoin holding support
Trade closed: target reached:
Bitcoin has reached the upside target
Comment:
