Bitcoin moves into the cloud but faces strong resistance at 4000$ USD


Bitcoin registered three consecutive winning days this week to overcome its 20- and 50-day moving averages (MA) and enter the Ichimoku cloud.

But the bulls seem to be running out of fuel according to the Stochastics which are set for a bearish cross above the 80 overbought mark. The RSI confirms this view, as the indicator looks to be losing steam slightly below its own 70 overbought level.

A reversal to the downside could see a retest of the bottom of the Ichimoku cloud around 3,720. Exiting the cloud, bearish action could pause next within the 3,480-3,300 support area, while a more aggressive sell-off is expected to test the 15-month low of 3,111.

bitcoin btc 21022019

On the upside, a decisive close above the 4,000-4,400 region is needed for the crypto to gain stronger interest from investors. Moreover, a run above 4,800, where the 50% Fibonacci of the downleg from 6,511 to 3,111 meets the upper bound of the cloud, would be an even more attractive target for the bulls as a break above this level is needed to shift the current three-month long neutral phase to a bullish one.

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.

Leave A Reply

Your email address will not be published.

I accept the Terms and Conditions and the Privacy Policy