Bulls rest: why stop rally Bitcoin?

After breaking the resistance zone of five thousand dollars rally Bitcoin has stalled. The cryptocurrency was able to gain a foothold above the important level, however, the next wave of growth, we do not wait. Today Bitcoin is trading at 5080 dollars. For the past day main cryptocurrency fell by 1.68 percent.

Last week the bears several times attempted to break below $ 5,000. One of them was a success, however long the pullback will not last. The experts Coindesk there are three reasons that could explain the hesitation of market players.

Why is not growing Bitcoin

The main digital asset of the industry is overbought — at least on a local scale. The RSI jumped above 70.00 on the second of April, when the price of Bitcoin jumped up to $ 5,000. Several days later, RSI is made up of 90 such high levels not seen since December of 2017.

To rally is to continue, the market needs to fall back, dropping the pressure of buyers. If all goes according to the bullish scenario after the pullback we are waiting for the next wave of growth.

Source: TradingView

The second reason is the bearish divergence trade volumes. 24-hour Bitcoin trading volume has doubled during the jump to $ 5,000. Then the number of transactions began to fall, and the price, on the contrary, continued to grow. Traditionally, this behavior of market players indicates the imminent u-turn on a local scale.

Source: TradingView

Finally, market makers can simply “tap out” hamsters the trading pair BTC/USD. After the break of the 200 SMA on the 1-day chart, Bitcoin has all chances to continue growth, but a pullback to 4500 dollars — that is, there is now holding this line — is also possible. One of the main rules of technical analysis: an asset almost always comes back to test the broken line.

Source: TradingView

In any case, we recommend you now to refrain from trading and watch the market. About the latest updates from the exchanges will find in our cryptodata.

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