Having bottomed out at $7,335 on Sunday, prices on CoinDesk’s Bitcoin Price Index (BPI) rose to $9,127 today – the highest level since March 14. As of writing, the BPI is seen at $9,074. The retreat from the intraday highs could be associated with the signs of bearish relative strength index divergence seen on the hourly chart.
The 22.7 percent recovery from $7,335 suggests the bulls have regained control, at least for the time being. However, the cryptocurrency is not out of the woods yet, the long duration technical studies indicate.
To start with, the cryptocurrency is still in a downtrend as indicated by the trendline sloping downwards from the Dec. 17 high and Jan. 6 high is intact. And furthermore, the imminent and scary-sounding “death cross” – when the 50-day moving average (MA) will cut the 200-day MA from above – could throw a spanner in the works.
The above chart shows (prices as per Bitfinex) that bitcoin will encounter a number of points of stiff resistance in the $9,180-$9,470 range:
- The 200-day moving average is seen at $9,181.
- Double top neckline resistance (former support) stands at $9,280 (Feb. 25 low).
- The 50-day moving average resistance is seen at $9,449.
- 50 percent Fibonacci retracement of the recent drop is $9,470.