Bitcoin (BTCUSD) 1H Chart 3/23; click to enlarge
Bitcoin started the week uncoiling from a low volatility consolidation over the weekend. However, it was not able to clear the 270 hurdle, which would open up the bullish outlook. During the 3/23 session, btcusd retreated from 270 as we can see in the 1H chart.
After the decline, price was able to hold above 262 and above the weekend-consolidation. It also held above the 100-, and 50-hour SMAs while respecting a rising speedline from last week’s low of 247. Meanwhile, the 1H RSI held above 40 for the most part. These are signs that bulls are still in charge in the near-term, and the bullish breakout is still in play.
If price can move above today’s high around 272 and above the 200-hour SMA, then we will likely be looking at a rally to test the 280-285 support/resistance pivot area. Above that, the 300 handle will be in sight.
In the 4H chart, we can see that if price clears above 280, it will be back above the 200-, 100-, and 50-period SMAs, adding visual evidence of a bullish continuation in the short-term. Also, if the 4H RSI is able to climb above 60, that would show loss of last week’s bearish momentum.
Bitcoin 4H Chart 3/23
(click to enlarge)
As we can see the 300 handle represents the high on the month. Also, note that the ability to hold above 247 at the end of last week meant holding above the March low, which was just a hair lower.
Now, if price pushes above 300, the 2015-high at 321 will be in sight. However, if btcusd fails to push above 280 and falls below 260, pressure will return to 247 with risk of breaking lower and opening the 200-handle.
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