Will BITCOIN HOLD ON? IF IT BREAKS MAJOR RESISTANCE -Bull?Hello Followers,
Bitcoin is still hovering above its long-term support at 6k, and has consolidated inside a short-term symmetrical triangle, as you already know, we do not believe on rigid analysis, once we use a different technical analysis, moving water.
Even though, we have to consider some formations because many people do use it, and sometimes, those formations work.
So, if Bitcoin breaks below the bottom of the triangle, there should be a test of the key support area while a break higher could signal that bulls are returning.
The 100 SMA is below the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Also, the 100 SMA appears to be holding as dynamic resistance since it lines up with the top of the triangle.
The gap between the moving averages is also widening to signal strengthening selling pressure. RSI is pointing up to show that there’s some bullish pressure left, but the oscillator is nearing overbought levels to reflect exhaustion. Similarly stochastic is heading higher so bitcoin might follow suit but is also nearing overbought territory.
The overall correction sentiment is to the upside, but is it really possible for BTC/USD to hold there, and retain its upside dreams in near-term.
The BTC/USD in long-term is inside a giant descending triangle, with its base support near the Bitcoin’s 2018-bottom near 5800. Not a surprise if the pair extends its prevailing bearish momentum and restest the lower trendline support. A potential rebound from any support at this point could also have BTC/USD test the channel resistance in medium-term. Overall, the pair seems to be locked inside it, awaiting breakdown/breakout.
The bias sentiment is more inclined towards bears. BTC/USD is already trending below its 50-, 100- and 200-H moving averages. The head of the 50H MA is also looking to crawl below its 100H MA, which indicates a medium-term bearish action in the market. The RSI and Stochastic indicators are also inside strong selling sentiment areas, awaiting an upside rebound.
We are forming a symmetric triangle on hourly BTC/USD chart. The stiff sideways action is enabling us to follow a wait-and-watch approach until there is a definite breakout/breakdown to indicate the trend for the rest of the day. In simple words, if BTC/USD breaks above the channel resistance, we will be putting our long positions towards the upside targets. And if BTC/USD breaks below the channel support, we will be putting our short positions towards the downside targets.
A break below this key $6,000 region could set off an even longer-term selloff as it would place bitcoin below its lowest levels in a year. This might also indicate that several bulls are giving up on their expected rebound for bitcoin before the year comes to a close.
News that the SEC suspended trading of two crypto-based securities wasn’t the best way to start the week for bitcoin and its peers. This dampens hopes of an approval in bitcoin ETF applications as the regulator could cite similar concerns.
Ethereum co-founder Vitalik Buterin noted that there is no chance that the cryptocurrency and blockchain space will see one thousand XXX Growth.
In the other hand, Winklevoss twins finally scored a victory when their fiat-based stablecoin proposal got an approval from the New York Department of Financial Services.
Good Luck and Good Profits
