- 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.
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.
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.