Bitcoin has pulled back since hitting a new all-time high on October 20. The price action is starting to resemble another key moment in the cryptocurrency’s history about 11 months ago.
First consider the downward-sloping trendline that’s become resistance. Also notice how the 21-day exponential moving average (EMA) is pushing up from below.
Next is the volatility squeeze, illustrated by the decline in Bollinger Band Width. These patterns suggest Bitcoin is fighting a near-term resistance line, with the potential for price movement to increase soon.
Now zoom back to late November and early December of 2020. Notice the similar events as BTCUSD paused after testing its previous high. At that time, the bulls needed 16 days to break out. We’re currently at day 12 since the last peak.
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First consider the downward-sloping trendline that’s become resistance. Also notice how the 21-day exponential moving average (EMA) is pushing up from below.
Next is the volatility squeeze, illustrated by the decline in Bollinger Band Width. These patterns suggest Bitcoin is fighting a near-term resistance line, with the potential for price movement to increase soon.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
