Bitcoin is trading inside a short-term horizontal channel. It is possibly following a previous fractal from the month of October. Based on our analysis, it is likely to increase towards the resistance line of the channel.
Bitcoin Price Highlights
- The Bitcoin price is trading inside a horizontal channel.
- There is bullish divergence developing in the RSI & MACD.
- The price is following a previous fractal.
- There is resistance at $9800.
The daily movement is very confusing.
The most likely outcome is that the Bitcoin price has broken out from a descending wedge (solid line) and has returned to validate it, finding support above the 200-period moving average (MA, blue).
On the other hand, it is possible that the BItcoin price just reached the resistance line of the wedge (dashed) and found resistance at the 100-day MA (white).
In the short-term, it looks like the Bitcoin price is trading inside a horizontal channel.
It is currently near the support line of the channel and has created bullish divergence, both in the RSI and the MACD.
This makes us believe that it will increase towards the resistance line of the channel and, giving more credence to the first option in the daily movement, that it has already broken out from the wedge.
Additionally, it seems as if BTC is following a fractal from the month of October.
We have had a breakout from a descending triangle, inside the horizontal channel the price has been trading it.
If the Bitcoin price continues following this fractal, it will reach the resistance line of the channel near $9800.
This fits with the bullish divergence and the descending wedge breakout scenario.
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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