Digital Currency Revolution Series: Bitcoin halts at 6-month highs of 6k, bullish engulfing patterns signal more rallies on cards

Bitcoin bulls have managed to break-out $5,746 levels which acted as strong support (now stiff resistance, refer weekly chart for intermediate trend).

According to InsideBitcoins, BTCUSD has now approached the critical resistance between $5500 and $6500, considerably high volatility can be expected outside the channel.

The pair break-out range resistance with a stern bullish engulfing candle in the minor trend, ever since then the prices are constantly spiking above DMAs (refer daily plotting).

The rallies are now halted at $6,190 levels (i.e. 6-wk highs) upon spinning top pattern, while all technical indicators still substantiate upswings.

Bullish engulfing patterns have occurred at $4,922.10 on daily, and at $4,071 and $5,238 levels on weekly plotting.

Well, these bullish engulfing patterns are coupled with bullish EMA & MACD crossovers signal upside price traction as the current price breaks-out stiff resistance & spikes well above 21-DMAs and EMAs.

Both momentum oscillators (RSI & Stochastic curves) show upward convergence to the current upswings that indicate the intensified buying momentum (on both timeframes).

Overall, after 2018’s bearish streaks, the pioneer cryptocurrency has begun to consolidate of late. Foreseeing further rallies on cards and major uptrend to resume in the long run, it is wise to capture minor price dips to construct long build ups for the medium term targets up to $6,814 levels with a strict stop loss of $5,395 level (spot reference: $5,985).

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 167 levels (which is highly bullish), while hourly USD spot index was at 12 (mildly bullish) while articulating (at 10:23 GMT).