- Bitcoin ability to defend the bullish flag pattern support will determine how far recovery goes towards $8,000.
- Bitcoin longs traders must decide to focus on longer time frames while ignoring short term price actions.
Bitcoin is trading above $7,200; a level a bit higher compared to Monday’s low around $7,197. The price is inclined towards the downside, making recovery a hard nut to crack. The short term ascending channel is providing immediate support.
It is apparent that a break below the channel support would stir declines below $7,000. Besides, the downside move could increase the impact of a bearish pattern trend continuation. In this, the Bitcoin futures contract could re-explore the levels towards $6,500 (November support).
XBT/USD daily chart
Meanwhile, the immediate upside is facing resistance at $7,300. Marginally toward the north, the 50-day Exponential Moving Average is standing in the way of movement. Moreover, gains targeting $8,000 will have to deal with the resistance at EMA 50 before assaulting the congestion of sellers at $8,000.
As long as the 50-day EMA stays below the 100-day EMA, Bitcoin will continue to grind towards key support levels. Similarly, the Relative Strength Index is pointing south toward the oversold. However, the falling triangle pattern suggests that a reversal in around the corner. The movement towards the 70 could easily see Bitcoin trend above $8,000 as the focus shifts to $9,000.
From a long term perspective, Bitcoin is readying for a significant breakout. The breakout requires that bitcoin longs traders focus on longer timeframes and ignore the short term up and down price actions.
BitMEX Index price: $7,296
Volume: $1.7 billion
Open Interest: $640 million
RSI: Impending reversal hints Bitcoin surge towards $8,000.
Trend: Bearish short term.
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John Isige , 2019-12-03 08:47:48 ,