A move above resistance at $8,500 would provide confirmation bitcoin’s bear market has ended, the technical charts indicate.
Over the weekend, the cryptocurrency clocked a three-week high of $8,458 on Bitfinex, adding credence to the short-term bull reversal confirmed last Thursday. Further, the 30 percent rally from $6,425 (April 1 low) proved that the much-feared “death cross” indicator was in fact a bear trap.
Still, the job is only part done, as bitcoin (BTC) has yet to violate the descending trendline established since Dec. 17.
As seen in the chart above, the descending trendline, representing a series of lower price highs over the last four months, is still intact. The trendline hurdle is seen around $8,500. The 50-day moving average (MA) is also lined up at 8,516.
A high volume break above the confluence of the trendline and the 50-day MA could be considered the final confirmation of the bearish-to-bullish trend change.
That said, BTC’s first attempt to scale the key resistance failed – running out of steam at $8,415 and falling back to $8,100 this morning. As of writing, the ascending (bullish biased) 5-day MA is capping the downside in prices.
- A high volume break above $8,500 (falling trendline hurdle would confirm a long-term bearish-to-bullish trend change.
- A healthy pullback to $7,700-$7,600 could be seen, but will likely be short-lived.
- A daily close (as per UTC) below the 10-day MA would abort short-term bullish view.
- Only a break below the weekly 50-MA (currently seen at $6,9510) would revive the bearish outlook.