Benzinga - Bitcoin (CRYPTO: BTC) was spiking up over 5% higher at one point during Wednesday’s 24-hour trading session, dragging Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) higher.
The move higher in the crypto space came in tandem with spot gold, which was edging moderately higher and inversely to the general market, which saw the S&P 500 falling from its high-of-day.
Bitcoin briefly pushed up through the $30,000 mark before rejecting to drop back under that level. Ethereum attempted to regain the psychologically important $2,000 mark but also failed.
Similarly, Dogecoin rejected the 200-day simple moving average (SMA), as did Shiba Inu. The rejection of that level indicates consolidation is likely needed before the cryptos gather the strength to make a possible break up into a bull cycle.
If Bitcoin can bust up through $30,000, alt-coins are likely to break through the overhead resistance, which could signal a return to bullish sentiment in the sector.
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The Bitcoin Chart: Technical traders may have seen a reversal to the upside on the horizon for Bitcoin because between April 21 and Tuesday, the crypto formed a rounded-bottom pattern on the 24-hour chart, which often signals bullish momentum is about to return. On Wednesday, Bitcoin was breaking higher on higher-than-average volume, which confirmed a high level of interest from the bulls.
- Between Monday and Tuesday, Bitcoin also back-tested the 50-day SMA, which was likely after the bears grabbed control between April 16 and April 21. The retracement to that level is healthy and the indicator is curling upwards, suggesting the 50-day may continue to guide Bitcoin higher.
- If Bitcoin closes the trading day near its high-of-day price, the crypto will print a bullish Marubozu candlestick, which could indicate higher prices will come again on Thursday. The next most likely scenario is that the crypto prints an inside bar pattern to consolidate.
- When Bitcoin retraces to the downside, bullish traders will want to see the stock print a reversal candlestick, such as a doji or hammer candlestick, above $26,965. If that happens, a new uptrend will confirm, which will give bullish traders more confidence going forward.
- Bitcoin has resistance above at $31,418 and $35,593 and support below at $28,690 and $25,772.
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