After a deep fall towards the two-month low of 6029.42 last Thursday, the price of Bitcoin managed to show a recovery only on Monday, posting a spectacular rally to climb as high as 6717, the highest since September 28.
The market could see further improvement as the RSI fluctuates in bullish territory above 50 and the MACD strengthens to the upside and above its red signal line, though consolidation cannot be ruled out as the former holds around its 50 neutral mark and the latter stands around zero.
On the upside, the price may pause around the 61.8% Fibonacci of the downleg from 6759 to 6029.42, near 6481. The bottom of the Ichimoku cloud is also located close to this area giving some importance to this resistance. Moving higher the 6551.44- 6623.62 zone marked by the peaks on September 14 and October 10 may come under the radar before bullish actions pick up steam towards yesterday’s top of 6717. Should bulls overcome the 6759 level, positive momentum could pick up speed.
On the flip side, if bearish forces dominate, the price could fall until the 38.2% Fibonacci of 6307.63, which provided some resistance back in September. Lower than that, attention would immediately shift to the 23.6% Fibonacci of 6201.36 where the price stalled the past couple of days. If that proves a weak obstacle too, support could be next found between 6118 and 6029.42.
by Christina Parthenidou, XM Investment Research Desk
Christina joined the XM investment research department in May 2017.
She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics. Previously, she earned a bachelor of science in Economics from the University of Cyprus. Apart from foreign exchange markets, her research interests include the impact of International trade on labour markets and product development.