Bitcoin is trading in a quiet mode on Wednesday, following two days of solid gains that have now been met with headwinds. The base of the thick daily cloud (1752), reinforced by Fibo 61.8% of 1863/1620 bear-leg, has proven to be an obstacle for further upside momentum as overbought conditions on the daily chart also contribute to current conditions.
Despite this setback, near-term bias still remains with bulls as positive momentum is still strong and DMA’s (10/20/30) are in a bullish configuration. For bulls to stay successful, they will need firm penetration into the daily cloud which would bring focus onto the next key barrier at 1836, made up from both Cloud Top and Dec 14 high along with a 50% retracement of 2128/1548 fall).
Should Bitcoin fail under the Daily Cloud then downside risk will increase significantly but the near-term structure should keep its positive stance above the rising 10DMA (1689) which today formed a bullish cross with 20DMA).
Res: 1752; 1770; 1810; 1838.
Sup: 1714; 1689; 1630; 1620.