Following yesterday's move back above 8000 $ the bitcoin markets have been bullishly consolidating above previous resistance on still favorable short to medium-term technicals which bodes well for the bulls heading into the upcoming weekend. This likely means [members-only content], probably into the [members-only content] $ area where sellers are likely to return to the marketplace. After that, we're expecting a pullback, a pullback that if bought at new higher lows once again will likely lead to [members-only content] sooner than previously expected.
We'll take one more look at the 4-hour chart this week for a close-up view of the short-term setup where we can see that price has moved back above the still slightly bearish 200 SMA on another [members-only content] signal that is helping market structure to further improve, all good signs for the bulls moving forward. So are the rising shorter-term moving averages, the still intact dynamic support dots, and the fact that near-term resistance is quite thin above [members-only content] $, so we're likely to see a continuation well above [members-only content] $ when that level is broken.
Moving on to momentum and volume, notice that Willy is now joining the Stochastic in the overbought territory while MACD stagnates and PPO flashes neutral signals, all pointing to generally choppy action moving forward, although RSI still has some room to run higher which leaves the door open to more upside over the near-term. The still-rising A/D line and increasingly bullish exchange volumes support this view, although said volumes are relatively small overall and volume profile is still very thin below [members-only content] $ so our call for more consolidation between [members-only content] $ over the coming days remains intact.
We'll take one more look at the daily chart as well which is looking pretty bullish considering SCMR has started to paint a [members-only content] signal on a small but bullish candle formation following the [members-only content] confirmation from yesterday, all of which suggests higher prices in the near future. The fact that price is back above the EMA's, which are currently reversing back to the upside, while the SMA's all continue to trend higher, the ascending channel remains intact, and the Ichimoku Cloud is still firmly bullish out in front of the market are also supportive of the bullish outlook. That said, supply area and historical dynamic resistance overhead are likely to keep a lid on price in the [members-only content]'s $ which is where we think its time to start taking profits on outstanding longs.
As far as momentum and volume are concerned, notice that Willy is beginning to stabilize despite not reaching overbought territory yet, RSI has as well and has started to move higher, the Stochastic did fully recharge and is starting to move up as well, MACD continues higher and is only a day or two away from crossing back above its zero line, and PPO is still flashing weak buy signals, all confirming the near-term bullish bias. So does the rising A/D line and the predominantly bullish exchange volumes, although here too volumes are relatively low overall and volume profile remains suboptimal so we don't think the [members-only content] $ area is done being explored despite the encouraging short-term setup discussed today.
While moves back down to the [members-only content] $ area are quite possible over the coming days, we think they will be bought quickly and bounce rather hard given the current technical setup as well as the recent price action that we've seen over the past 24 hours. That said, it's also possible that price simply continues to grind higher without much in the way of pullbacks until the [members-only content]'s $ which is what appears to be materializing in the market right now.