According to the technical tables, the corrective ramp in Bitcoin (BTC) can gain momentum when the switch resistance exceeds $ 6,500 behind the high volumes.
The leading cryptocurrency witnessed a symmetric triangular break last week, opening doors for a more powerful trimmer rally to $ 6,800 – $ 7,000.
However, despite bullish installation, the BTC was rejected at $ 6,600 on Friday, and weekend trading took place horizontally between $ 6,350 – $ 6,550. As a result, the sudden rise in appearance was neutralized.
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In addition, trade volumes fell to two-month low at $ 3.22 billion on Saturday, marking a question about the sustainability of recent recovery.
That is, if the crypto currency sees a high-volume rise from the three-day long narrowed price range, the corrective move may continue.
At press time, BTC is changing hands at $6,490 on Bitfinex – down 0.10 percent on a 24-hour basis.
As can be seen, BTC has set a price range that narrows during the weekend. A rupture of more than $ 6,540 (triangular resistance) indicated that the rally’s low level of September 8, 611,119 would continue.
More importantly, it will strengthen the bull event that arises from the relative strength index (RSI) deviation and symmetrical triangular break due to last week’s rise.
On the other hand, a $ 6.380 decline (the lower limit of the contraction price range) signaled the end of the corrective rally.
On the daily chart, the upward transition between the 5-day and 10-day moving averages (MA) shows the least resistance path on the high side. That is, the crypto currency is more likely to extend the corrective rally in the short term.
A high volume movement over $ 6,540 (upper end of the range) can provide a continuous rally towards $ 7,000 (psychological barrier). On the higher road, BTC may face resistance at $ 6,710 (50-day MA) and $ 6,750 (100-day MA).
A downward cut of the collapsed price range means that the low level correction at $ 6,119 is over and that this level can be retested.