BTC hits resistance: bullish sign points at push to $9000

12 Jun, 2019
by Lourens Pepler
Price Analysis
BTC hits resistance: bullish sign points at push to $9000

On Tuesday Bitcoin experienced a small dip to $7700, before bouncing back to our resistance line at around $8000. Is this an indication that BTC is bullish? This is our BTC analysis for 12 June 2019.

Highlights:

- BTC against resistance

- 4 hour momentum bearish

- Possible bullish sign on the daily?

Today we will focus on the 4 hour chart, since that is where the readable RSI structure lies. We can see that BTC is now once again outside of this downwards trend we have on momentum. This is normally not a good sign since its an indication that price is against strong resistance.

We can also see the formation of a double top on RSI outside of the trend, indicating that the momentum that pushed the RSI through resistance is now running out of steam. A similar structure formed earlier in June that was followed by a 15% dip.

BTC/USD chart provided by Tradingview

A 15% decrease from current price will get BTC to roughly $6800, which we still believe is a price zone that needs to be revisited in the near future, and if RSI falls back below trend then we might see it happen fast.

BTC/USD charts provided by Tradingview

If we look for any Bullish signs, we are able to spot something on the daily RSI. Drawing the momentum support line back on the chart, we notice that RSI is outside of the uptrend and also finding support on 50 RSI. As we know during an uptrend, 50 RSI acts as support for momentum.

Usually, when momentum extends outside of its trend, it can be expected that it will return to trend, or at least test it for resistance. If we assume that that momentum will return to the trend, then we can expect BTC to make a push towards $9000, since that is the price at which momentum started falling below trend.

BTC/USD chart provided by Tradingview

Whether we make a push to the near $9000’s, or we dump to the near $7000’s, is up to the 4 hour momentum. Do you think BTC can break $8000 resistance and run for the $9000’s, or is the dump long overdue and we will BTC make its way to the near $7000’s? Let us know what you think in the comments below.

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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