Bitcoin Price Analysis: BTC Bullish for Short-term But Also Suggests Overbought Conditions

Today was bullish for cryptocurrencies, as stock markets were closed and the U.S. dollar gained against its major counterparts. Bitcoin is trading higher by 3.05%, making it a lower crypto performer on the day. IOTA was today’s worst performer, with gains of 2.54%, while Ripple also traded higher on the session with gains of 5.19%.

Today’s Top Crypto Performances

Today’s Top Crypto Performances

The trend in cryptocurrencies remained higher on the day, which is not moving in-line with the longer-term outlook for the asset class. Bitcoin underperformed most of the major cryptocurrencies today, but technical analysis readings suggest that this may not continue tomorrow.

Chart View: Bitcoin / U.S. Dollar (Short-Term)

Support Level: 7590

Resistance Level: 7690

Price Direction: Sideways to Higher

Chart View Bitcoin U.S. Dollar (Short-Term)

On the short-term time frames, Bitcoin is showing sideways to higher readings. Against the U.S. dollar, the price of Bitcoin has moved up over the last 24 hours. Market prices are now trading at 7658 against the USD. Bitcoin is trading at the upper end of its recent trading range, and the technical indicator readings have turned neutral at 60. The RSI indicator is stalling, which indicates a decline in momentum. If we see a break of the resistance on the 15-minute charts, traders will likely consider moving into new long positions in BTC.

Chart View: Bitcoin / U.S. Dollar (Long-Term)

Support Level: 7090

Resistance Level: 7930

Price Direction: Down

Chart View: Bitcoin / U.S. Dollar (Long-Term)

On the long-term time frames, the picture is much more bearish. Bitcoin has been caught in a downtrend since May 4, 2018. Bitcoin is trading at the lower end of its long-term trading range, and this suggests that contrarian crypto traders might take advantage of these lower levels to buy the cryptocurrency and try pushing prices higher. Long-term, the technical indicator readings are rising, suggesting overbought conditions. The RSI indicator is trading near 60, which indicates rising momentum. On the other hand, if we see a break of the support on the 4-hour charts, traders will likely consider moving into new short positions in BTC.

Bitcoin Trader’s Outlook

The recent market activity in Bitcoin suggests a mixed outlook for the market-leading cryptocurrency. Short-term indicators are bullish, and a break of resistance could force a retest of the previous highs near 7690. Long-term indicators are more negative, and a break of the prevailing support could inspire bearish trading activity for Bitcoin traders interested in taking long-term positions.  

Mike Ben

Mike is a cryptocurrency enthusiasts and writer. The cryptocurrency world has become his primary interest, with movies and books, some of his favorite pastime activities. He's an investor in some blockchain projects; VeChain, Stellar Lumen, Gifto, Cardano, Bitcoin and Cindicator. Mike contributes guests posts to BlockPublisher & can be connected over Twitter or email editor.news@blockpublisher.com

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