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Bitcoin's increase from the $5857 bottom has been quite rapid, with the price breaking out above major resistance levels without trouble.
However, the rally has stalled near $6400. This is a very important level, since it is both the 0.618 Fib level of the entire previous decrease and the 200-hour moving average (MA). Therefore, a breakout above it and its subsequent validation as support could go a long way in providing a bullish bias.
However, the price has created a double top near this resistance level and generated a shooting star candlestick, both likely reversal signs. In addition, there is bearish divergence in the RSI.
Therefore, the BTC price is expected to move downwards towards the support areas outlined below, found at $6200 and $6050.
Bitcoin's increase from the $5857 bottom has been quite rapid, with the price breaking out above major resistance levels without trouble.
However, the rally has stalled near $6400. This is a very important level, since it is both the 0.618 Fib level of the entire previous decrease and the 200-hour moving average (MA). Therefore, a breakout above it and its subsequent validation as support could go a long way in providing a bullish bias.
However, the price has created a double top near this resistance level and generated a shooting star candlestick, both likely reversal signs. In addition, there is bearish divergence in the RSI.
Therefore, the BTC price is expected to move downwards towards the support areas outlined below, found at $6200 and $6050.