Hello traders.... After Bitcoin's explosive move up on Friday after CME June Bitcoin 4.30% contracts expired, we have watched price consolidate throughout the weekend. However, rather than a strong retracement down to the $6150 area, ultimately price has only made it to $6602 which is just beyond the 40.2% level. While not ideal, it is enough to produce momentum in the shorter term. It appears that support (the blue box) is stronger than was anticipated. The week's lowest volume came on Tuesday last week and it has continued to expand through the weekend as well.
With a clear bullish flag on the 6 hour chart, the expectation is for price to rise and breach the channel resistance that has been in place for two months. This should unlock bullish momentum as price targets the $7100 area which also places price near the 2.618 extension. Currently, price has established a higher low and a higher high, indicating a bullish trend . While RSI is nearing oversold, OBV is targeting its own horizontal resistance, a break above which should be quite bullish . Watch for price spread to increase and volume expands on a move up.
As I was writing this, price made the aforementioned move through resistance. Failure of the channel resistance to hold as support should see price falling toward the earlier expected $6150 level.
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Will Bitcoin cross above $7000?
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Syed Eassa Zaeem
@zaeemsyed
