A technical look at the price of Bitcoin against the dollar
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Answer A technical look at the price of Bitcoin against the dollar
Ten days ago we saw Bitcoin trading within a very tight price range between $9,400 and $10,800.
(In the chart below, the purple line shows the 50-day moving average.)
Four hour chart:
This range also forms a horizontal triangle, the top of which is quickly approaching the climax and it may be just days, although at any moment the breakout may occur.
In the last hours, bitcoin fell by nearly $400, approaching the lower bound of the triangle pattern along with the $10,000 support area.
Could Bitcoin Matters Get More Complicated?
The answer to this question is difficult because Bitcoin’s support for this level has been seven times and the longer the period of testing the support, the greater the chance of a crash.
Read:Miami mayor tempts Chinese bitcoin miners with cheap nuclear power
Although Bitcoin has dominated the crypto market so far
However, there are some exceptions in alternative cryptocurrencies
Which shows its strength from time to time, but it is still far from regaining its former glory.
Bitcoin still holds 68.9% of the total market capitalization.
After the recent decline in the bitcoin price, the crucial support turned to be between $9,800 and $10,000 besides the lower boundary of the aforementioned triangle.
Looking at the chart for one day:
We can also see that Bitcoin is holding onto the 100-day moving average line (the white line) which is around $9,900.
Therefore, it is likely that this will result in the collapse of the triangle with a negative red candle
The support level reaches $9600, then between 9000 to 9200, and possibly even $8500-8800.
From the upside, the resistance is at $10,300 and the triangle’s descending trend line ($10,400).
There is a 50-day moving average line ($10,700 – $10,800) immediately followed by an unbreakable area.
The RSI on the daily chart is at a critical level.
As for the trading volume in the past three days except today, we can see a decrease in trading volume, which is another sign of the upcoming strong price movement in general.
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Article from Source behave.
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For Beginners in Technical Analysis: Ichimoku Indicator Explained
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