Bitcoin Has Good Potential Bounce To $8,000? | Early Signals

BITMEX:XBTUSD   Bitcoin / US Dollar Perpetual Inverse Swap Contract
I would like to have a quick view with you at the 4H timeframe chart for Bitcoin ( XBTUSD ). We have some early signals that are telling us that Bitcoin can resume its move up, let's take a look at those

We will need some context first... So let's get started!

  • In my previous article I mention the Exponential Moving Average ( EMA ) as well as the Moving Average (MA) lines, we talked about EMA10, EMA50, EMA100, EMA200, EMA300, and MA200.
  • There I showed how these can tell us where prices are likely to go next (you can read all about it in the trade idea below).

    Is Bitcoin Ready To Resume Its Growth? EMA100 Conquered
  • I mention this because we are going to be looking at the moving averages again.

Bitcoin ( XBTUSD | 4H)
  • Bitcoin managed to break above these resistance levels but quickly moved back down. Now, we are seeing that EMA10 was broken as well as MA200 (black line), soon after, the next candle that followed produced a nice bounce, this is the candle that is active now and closes in less than 30 minutes.
  • If you look at where it says "HERE", we have very strong support and we are seeing a bounce as well as above-average volume coming in... This is the early signal that is telling us that Bitcoin can easily move up from here. The RSI is also strong.
  • On a different note, if prices retrace and move lower, the red arrow can be followed which is still a bullish scenario.

Conditions for change
Here we have a bullish setup, but what needs to happen for this to turn from bullish (green) to bearish (red)?
If prices move and close below $7,000, the chart would still be fine but if this close happens with good volume , then prices are more likely to go lower than to bounce back up.
If $6800 is broken then we are looking at a different story and a new analysis is needed, there would be only one more support left before the bears take full control...

Now, Bitcoin is looking bullish and ready to go higher or will it crash and go low... What's your take?

Share your charts and thoughts in the comments section with us.

Thanks a lot for reading.


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