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Bitcoin (BTC) is currently trading at around $5,400. A bullish engulfing pattern was formed after the digital coin rallied upward and broke the resistance of $5,475. Next resistance is at around $5,625 and support is at around $5,400, the current price level.
We also see a formation of spinning top pattern which shows indecision, so we might see some correction. It is suggested not to take any long position and wait for the price to settle or to touch the resistance.
According to Dow Theory, the price is back to the public participation phase after some minor correction. During this phase, negative sentiment starts to dissipate. As the good news starts to permeate the market, more and more investors move back in, sending crypto prices higher. This phase tends not only to be the longest lasting, but also the one with the largest price movement. It’s also the phase in which most technical and trend traders start to take long positions.
The price is moving between the channels. In addition, the RSI was moving towards the overbought region but we see a minor dip in momentum, indicating a minor correction.
Taking 9 period moving averages (blue) with 21 period moving averages (red), there’s a bullish crossover, and also the price is trading above moving average line.
Bitcoin (BTC) is currently trading at around the $5,400 level, after previously breaking the resistance of $5,475, while the next resistance is at around $5,625. According to the Dow Theory the coin is in public participation phase and it will demonstrate some correction. Bollinger bands are also in agreement with the indication that the digital currency will show some correction.
Overall, it is not suggested to take a long position at this price. The above price levels can be used for swing trading.