Bitcoin's price range continues to narrow with each passing day, but a big move on either side could happen soon, the technical charts suggest.
Having witnessed a bull reversal on Wednesday, prices on CoinDesk's bitcoin price index (BPI) rose to $11,711 at 03:59 yesterday. It appeared as though bitcoin (BTC) would break above $12,000 and confirm completion of the bottoming process.
However, prices fell back to $10,889 at 17:59 UTC. Bitcoin bulls made another attempt to regain lost glory, but faced rejection at $11,608 in Asian hours today.
The failure to capitalize on Wednesday's bull reversal has yielded a drop to a three-day low of $10,321 today. As of writing, BTC is changing hands at around $10,600. The cryptocurrency has depreciated by 4.11 percent in the last 24 hours, says data source OnChainFX.
Further, the drop from the previous day's high of $11,711 to below $10,500 has neutralized the immediate outlook. A break either up or down would likely set the tone for the next major move.
4hours
The above diagram (costs according to Coinbase) indicates bitcoin has made a symmetrical triangle. It contains two joining trendlines, speaking to a progression of consecutively bring down pinnacles and higher troughs. It is a pattern continuation design, i.e. it more often than not closes with a major move toward the first pattern.
For BTC's situation, the symmetrical triangle is framed in a downtrend (auction from a record high of $20,000). Along these lines, the narrowing value extend (symmetrical triangle) could end with a major move to the drawback.
Such a move would open entryways for a slide to $5,232 (focus according to the deliberate tallness strategy - the contrast between triangle high and low subtracted from the breakdown value/triangle support of $10,480). In any case, the drawback target sounds unrealistic.
All things considered, BTC could return to $9,000 following affirmation (4-hour close underneath triangle bolster) of a drawback break of the symmetrical triangle design. The relative quality list (RSI) is inclining downwards, proposing extension at a drop in costs. The key MAs - 50, 100, 200 - are inclining downwards for the bears. Along these lines, the drawback break looks likely according to the 4-hour diagram.
That said, the dips below the $10,000 mark are to be viewed with caution says the daily chart.
Daily chart
So far, the bears have consistently failed to keep BTC prices under $10,000. Also, BTC has been able to avoid a daily close (as per UTC) below $10,391 (50 percent Fibonacci retracement of 2017 low to high). Further, the rising trendline (drawn from July low and September low) support is lined up at $9,370.
So, there is always a risk of BTC running into bids anywhere between $9,000 to $10,000.
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A bearish symmetrical triangle breakdown could yield a sell-off to $9,000, but dips below $10,000 could be transient.
Only a daily close (as per UTC) below the ascending trendline support of $9,370 would open doors for a sustained move lower to $8,148 (61.8 percent Fibonacci retracement of 2017 low to high).
Bullish Scenario: An upside break of the symmetrical triangle would add credence to persistent demand around $10,000 and could see BTC test resistance at $13,000 and $14,622 (50-day moving average) over the weekend.
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I expect prices would between $11k - $11.5k or max $12k. I had buy when it was $10.5k :)