Bulls Get Relief as Bitcoin Price Beats $6.5K Resistance

Bitcoin's price rose above $6,500 Thursday, offering some respite for the badly battered bulls.

The world's largest cryptocurrency by market capitalization had fallen to $6,138 Wednesday at 16:00 UTC – its lowest level in 26 days, according to Bitfinex data. Yet, bitcoin's price was last seen at $6,500, up 5 percent from its most recent low.

What to make of the move? Clearly, investors did not want to miss a small opportunity in the form of a pullback that started August 1 and lasted all of 10 trading days.

Supporting the view is that the broader market has seen an uptick as well, best depicted by the total crypto market capitalization, up $10 billion on the day where its value currently stands at $235 billion.

As a result, other well-known cryptocurrencies are posting gains. Names like ethereum (ETH), EOS (EOS) and bitcoin cash (BCH) have each appreciated by at least 3% percent over the last 24-hours.

Daily Chart

So, where to for bitcoin? Right now, there are hints if no conclusions.

The Tweezer bottoms, identified by two equal-sized bearish and bullish candlesticks with minor wicks, demonstrates a reversal in the current trend.

Also worth noting is that the MACD indicator, which identifies trend changes and momentum, has printed its first bullish sign in 10 days after ticking up slightly back toward the neutral zero line.

But while all of that is true, the relative strength index (RSI) is approaching well-known resistance at 45.92. Further, the exponential moving averages (EMA 21-day and 55-day) have crossed, sending a mixed signal that would otherwise see prices fall and are requiring backing from other indicators, which currently show bullish.

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• Daily Tweezer bottoms marks a small trend change, backed by growing volume.
• Be aware of the bear cross from the short and long-term EMAs
• The daily MACD for bitcoin is finally ticking up for the first time in 10 days signaling positive price action from the bulls.
• RSI could present issues facing a previously historical resistance line at 46.92 points.

Disclosure: The author holds USDT at time of writing.

Image via Shutterstock; Charts via TradingView