Only a few hundred dollars remain for Bitcoin (BTC) until local highs are reached, after the leading cryptocurrency once again broke pattern a couple of days ago to head up. Now, the short timeframe indicators are a mixed bag of bullish and bearish – although the trend is clearly up.
We’ll start with the 4-hour, where we see the July 8 breakout above the entire block of $12,000 and the support/resistance (S/R) zone around it. This resistance is flipped support and has already been retested once.
Wicks precisely at $13,000 indicate obvious resistance there, but we can already see a bull flag forming at this level indicating a slight contest. We note that volume here has matched the previous candle (screenshot taken minutes before candle close), and thus is maintaining.
The 4-hour indicators are not too bad, but are showing faint signs of fatigue: RSI peaks are almost level but not quite; and the histogram peaks are bearishly divergent, and the columns are ticking down slowly but surely.
Moving to the 2-hour, we see a slightly more negative picture. A classic rising wedge typically harkens a breakdown. Volume is dropping overall with the repeated rejection above $13,000. The 21-hour exponential moving average (EMA, blue line) has been holding price nicely on this chart, so we may look for a correction to hold there.
The indicators on the 2-hour are even more clear. RSI is clearly diverging on the peaks, and the histogram refuses to put in even a flat column. On the latter point, it is too early in the candle to tell, though.
All of these short term observations must be qualified with at least a daily view, below. This is a clearly bullish chart, with the rising volume on the $12k breakout (and today’s looking to match it), a solid close above resistance, and a mere $800 from the local top of $13,800 (Coinbase).
The daily indicators look stellar, too, with an RSI which is daily rising; a bullish crossover (so far!) on the MACD; and a histogram ticking hard to the upside (so far!). A daily close with just the present indicators would probably see Bitcoin blowing straight through local highs with ease.
Thus, today’s fight for $13,000 is somewhat critical in the short term.
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