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by Charalambos Pissouros

Is Bitcoin Set for More Recovery?

BTC/USD spiked up during the Asian morning Wednesday, breaking above the resistance (now turned into support) of 6550, to stop near the 6870 obstacle. Then, it retreated somewhat. In our view, the move above 6550 confirmed a forthcoming higher high on the 4-hour chart and may have signaled a short-term reversal to the upside. Indeed, the crypto now appears to be trading above a new tentative uptrend line, drawn from the low of the 14th of August.

We believe that the bulls may take the reins again soon and aim for another test near 6870. If they prove strong enough to overcome that hurdle, then we may see them aiming for our next resistance, at around 7150, marked by the peaks of the 6th and 7th of August.

Taking a look at our short-term oscillators though, we see a decent chance for the corrective retreat to continue a bit more before the bulls decide to shoot again, perhaps to challenge the 6550 level as a support this time, or to test the aforementioned uptrend line. The RSI turned down after hitting resistance slightly below 70, while the MACD, although above both its zero and trigger lines, shows signs of slowing down.

Now if neither of those support zones holds and the price falls below the uptrend line, then we would expect the bears to initially aim for the 6210 barrier, the break of which may pave the way towards the low of the 14th of August, at around 5900.

Bitcoin BTCUSD 4-hour chart Technical Analysis

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