Bitcoin is in a bearish short-term trend as the price is trading below the 4-hour Kumo (cloud) resistance at 7,180-7,200. As long as the price is below that level, we should expect selling pressures.
Bitcoin is trading above the short-term support of the kijun- and tenkan-sen indicators at 6,300, but also below the 4-hour Kumo. The price has stopped at the 50% Fibonacci retracement from the top. The decline looks somewhat impulsive and this implies that at least one more downward leg should be expected. Confirmation will come with the break below 6,300.
On a daily basis, the pullback by Bitcoin price has held both horizontal and above cloud support. The price is now testing the tenkan- and kijun-sen indicators, which are now resistance at 6,500-6,700. Breaking above this resistance will increase the chances for a new higher high above 7,900.
The longer-term trend remains bullish as long as the price is above 5,400.
The material has been provided by InstaForex Company – www.instaforex.com