The Bitcoin price has returned to validate the previous resistance line of the descending wedge. Since it has found support above the 200-day moving average, the daily outlook looks somewhat bullish. However, a descending triangle has developed in the short-term — making a breakdown possible.
Bitcoin Price Highlights
- The Bitcoin price has returned to validate the previous resistance line.
- It has found support above the 200-day moving average (MA).
- The BTC price is trading inside a short-term descending triangle.
- There is support at $8600.
The Bitcoin price is still facing resistance from the 100-day MA. However, an interesting development is the fact that it has returned to the previous resistance line.This is a very customary movement after breakouts and often indicates that the price will continue its upward trend.
This is strengthened by the fact that it has found support above the 200-day MA. This MA previously acted as resistance twice on October 1 and 10.
If the support area created by the 200-day MA and the previous resistance line holds, in my opinion, the BTC movement can be considered bullish.
However, the short-term outlook gives a completely different view.
The pattern created looks a lot like a descending triangle, out of which we should breakdown today based on the projected end of the pattern.
This is strengthened by the fact that there is virtually no support until $8600 — right at the previous resistance line which was crushed on the October 25 increase.
Therefore, I would expect the price to break down from this triangle later today.
Good luck and happy trading! For yesterday’s analysis click here.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Twitter, TradingView.
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