1.5 C
Manchester
November 12, 2019
Image default
News

Bitcoin Keeps Failing at This Key Price Hurdle

View

  • A four-month falling trendline proved a tricky nut to crack through the Asian buying and selling hours and reversed bitcoin’s rise from $9,200 to $9,500. The outlook, nonetheless, would flip bearish solely under the 200-day common help at $9,127.
  • The pullback from $9,500 to $9,200 lacked quantity help and might be short-lived.
  • A high-volume UTC shut above $9,470 is required to verify an upside break of the multi-month falling trendline and open the doorways for $13,880 (2019 excessive).
  • Acceptance under the 200-day MA would weaken the speedy bullish. The ensuing sell-off to $eight,500, if any, will possible be transient.

Bitcoin’s (BTC) wrestle for a bullish breakout continues with a falling trendline capping positive aspects for the fifth time in 11 days.

The prime cryptocurrency is presently buying and selling within the purple close to $9,300 on Bitstamp, having confronted rejection close to $9,470 – the resistance of the trendline connecting June 26 and Aug. 6 highs – through the Asian buying and selling hours.

The four-month trendline sloping downwards from the 2019 excessive of $13,880 first got here into play on Oct. 31. On that day, costs clocked a excessive of $10,350 however didn’t print a UTC shut above the resistance line.

Similar value motion was seen on the next two days and on Monday when costs rose from $9,200 to a one-week excessive of $9,586 however didn’t beat the trendline hurdle.

The repeated failure to scale the multi-month downtrend line might pressure some buyers to query the sustainability of the latest rise from five-month lows under $9,500.

However, such fears could also be untimely, as costs are nonetheless holding above the 200-day MA help, a barometer of long-term market traits, as seen within the chart under.

Daily chart

BTC is once more struggling to get previous the descending trendline, presently at $9,470. Even so, it’s early to name a bearish reversal, because the 200-day MA help at $9,127 is undamaged.

The common has been proscribing draw back since Oct. 30, having labored as resistance a number of instances within the 16 days to Oct. 11.

All-in-all, BTC is being squeezed between the long-term common help and the falling trendline resistance.

A high-volume UTC shut above $9,470 is required to verify an upside break of the falling trendline. That would suggest a resumption of the bull market from lows close to $four,100 seen at the start of April and open the doorways for resistance at $13,880.

On the draw back, acceptance under the long-held 200-day MA help at $9,127 will possible invite stronger promoting stress, resulting in a drop to $eight,500.

A bullish breakout seems to be possible, because the cryptocurrency tends to select up a powerful bid six months forward of reward halving, as mentioned final week.

Note that the latest pullback from $10,350 lacked quantity help. Essentially, it represents a bull breather and might be reversed.

Hourly chart

BTC jumped from $9,273 to $9,586 within the 60 minutes to 22:00 UTC on Monday with shopping for quantity (inexperienced bar) hitting the best degree since Oct. 31.

Indeed, the spike has been erased with costs falling to $9,165 just a few hours in the past however with weak buying and selling volumes.  Therefore, the opportunity of BTC rising again to highs close to $9,600 can’t be dominated out.

Disclosure: The writer holds no cryptocurrency belongings at the time of writing.

Bitcoin picture by way of Shutterstock; charts by Trading View

Related posts

Blockchain Is On The Way But Adoption Is Slow – CMSWire

admin

Blockchain-based security architecture for renewables trading – eeNews Europe

admin

Ron Paul Survey Reveals Most Prefer Bitcoin for 10-Year Investment

admin

Leave a Comment

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.