Bitcoin jumped from trading in the vicinity of $380, yesterday, to over $420, today. However, the upsurge is already fading as the RSI has started to show a divergence, which indicates lack of momentum. A very similar divergence setup foreshadows the reversal that took place on the 16th.
If price retraces, the pivot zone at $386 is bound to come into play. This level acted as resistance about four times in the past few days, and also as support on the 15th, so this area is very likely to be respected by the market once again.
There is also another important technical level at $375. The market bounced from this level on two separate occasions, once on the 18th and again on the 20th, therefore, this area is of technical significance and should not be overlooked.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
The U.S. Supreme Court has delayed its highly anticipated ruling on the legality of President…
President Donald Trump has officially closed the door on any possibility of a pardon for…
Ethereum has officially crossed the ~$300 billion mark in application total value locked (TVL), solidifying…
The U.S. Securities and Exchange Commission has approved Bitwise’s spot Chainlink ETF, marking the first…
Rumble and Tether have officially launched the Rumble Wallet, a self-custodial crypto wallet integrated directly…
BNB Chain is preparing to activate its Fermi hard fork on January 14 at 2:30…