The Bitcoin price has created three weekly bearish candlesticks in a row. It is still using the previous descending resistance line as support. The price is trading inside a descending wedge and has fallen below a significant support level. A break below $8300-$8400 would likely take us to $8000.
Bitcoin Price Highlights
- The Bitcoin price has created a bearish weekly candlestick.
- The price is facing resistance from the 10-week moving average (MA).
- The price has not moved below the previous descending resistance line.
- Bitcoin is trading inside of a descending wedge.
In the weekly chart, the Bitcoin price has created a bearish candlestick. It is the third such candle in a row after October 25’s rapid price increase. All three of them are contained within the body of the bullish candle of the October 25 week — and volume has been very small during this decrease. However, in order for this to be considered a retracement instead of a reversal, it would be good to see a bullish candlestick this week.
Finally, the Bitcoin price is facing close resistance from the 10-week moving average (MA) — which has made a bearish cross with the 20-day MA.
Looking at the daily chart, we can see that the Bitcoin price still has not fallen below the previous descending resistance line. This level also coincides with the 0.5 Fib level of the entire movement.
The 100- and 200-day MA bearish cross is a bearish development. However, a rapid price increase today and tomorrow would likely cause the cross to be rejected. It is of importance to see if this happens.
Looking closer, we can see that the Bitcoin price has created two bullish Doji in a row.
Similarly, a rapid price increase that closes above $8700 would be a notable bullish development.
Since the October 25 move, the Bitcoin price has been trading inside a descending wedge.
A bearish indication is given by the fact that BTC has fallen below the $8500 support level and has validated it as resistance by creating a bearish shooting star.
If the $8300-$8400 level falls, we could see a breakdown from the wedge and a test of $8000.
However, there is still strong support above $8400 and this level could initiate a bounce that would lead to a breakout.
For our previous 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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