Bitcoin (BTC) Bears Testing the Monthly Trendline
Bitcoin Bears have been emboldened by repeated rejection from a Key moving average hurdle, but they may take a breather over the next 24 hrs as the price heads for another Key trendline of support.
The world’s #1 cryptocurrency is lacking a strong bullish or bearish bias near-term given that its price action has largely traded sideways since the beginning of September.
The repeated failure to find sustained acceptance above the 50-Day MA and 6,850 resistance gives the upper hand to Bears, as it indicates that the path of least resistance is South.
Bulls might be ready to fight back after bouncing off of a month-long ascending support trendline that has allowed prices to form a series of higher-lows.
BTC is currently trading at 6,601.31 (the market is open), after having bounced off of the support trend line at 6,424 earlier Wednesday.
The Daily Chart
As seen above in the daily, any bullish momentum for BTC has been halted by the 50-Day MA and 6,850 resistance zone.
It is worth noting the MACD is also nearing a bearish cross which may hint at more Southside action action ahead.
The bearish MACD cross has yet to be confirmed.
On top of that, Bulls may be able to put up a fight by finding support on the ascending trendline that has been in effect since 8 September. Bitcoin’s price has been able to form a higher low on the trendline 3X’s in the past, so making a fourth is not out of the question.
Note: the compressing RSI and narrowest Bollinger Band width since December 2016 suggest price is overdue for volatility.
Having failed to find acceptance above the 200 EMA on the 4-hr, again, confirms the path to the Northside is filled with obstacles.
It is clear that Bears have not yet gained full control since a near oversold 4-hr RSI when combined with the ascending support has allowed the price to form a series of higher lows.
Currently the bBears will look to extend losses to the previous higher low of 6,328 if price finds acceptance below the rising support.
- Forming another higher low could return scope for the 50-day EMA located near 6,640
- Daily acceptance below the rising support would set scope for a move to the previous higher-low of 6,328, which if violated would open the way for a move to next support of 6,100
- A daily UTC close above 6,840 would put the Bulls back in the charge.
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