Bitcoin [BTC/USD] Technical Analysis: Trend reversal will push price to bullish breakout

Earlier today, Bitcoin [BTC] broke past one of the crucial resistances within which it has been trading, since the beginning of this month. While that bullish momentum has not been converted into a solid upwards movement, the price has an added tendency to move upwards due to the reversal.

1 hour:
While the technicals still observe Bitcoin to be trading between two limits, the $6650 and $6680 resistances have been broken. This results in a stronger uptrend from the $6450 – $6600 – $6666 mark.

The uptrend provides a solid support for the price to fall back on, with further help appearing at the $6450 mark. The break past the short resistance at $6720 – $6600 could see a positive movement.

The MACD, however, is demonstrating a bearish crossover due to the drop yesterday. The histogram is also moving downwards, suggesting that this might be a continued trend.

The Awesome Oscillator is also demonstrating a bearish signal for the short term, as seen by the occurrence of red bars.

4 hour:
The price has found resistance at $6790 and support at $6170, a trend that has continued since September. The movement in price is also demonstrated by the $6290 – $6460 – $6560 uptrend.

As observed, there is also a slight downtrend from the $6790 – $6700 mark.

The RSI recently recovered from the overbought zone, finding itself declining to the center as buying pressure subsided.

The Klinger VO recently saw a bullish crossover, which then subsided to rebound off the signal line.

The Parabolic SAR is flashing a bullish outlook for the medium-term forecast of Bitcoin’s price.

1 day:
A powerful long-term trend was observed and represents the price moving downwards. This comes off the resistance at $8390 and is currently forming a triangle with the support level at $6170.

The 20-period DEMA is at $6550 and is providing a support for the coin.

The Chaikin Money Flow is positive after a solid jump from around 0. The Accumulation Distribution Indicator is confirming a slight uptrend seen in the price.

There is also a final support at $5850.

Conclusion:

The price seems to be primed for a greater upward movement due to the resistance break earlier today. However, indicators suggest that this growth will be realized in the medium to long-term.

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