Bitcoin [BTC] tested lows near $9900 last day before it briefly climbed back above $10,000. The price of BTC at 4: 15 hours UTC on 11th September 2019 is $10060. It is trading 2.06% lower on a daily scale.
The 4-hour chart witnessed an attempt to pump off of an ‘important Fibonacci retracement cluster.’ However, the attempt above $10,100 was rejected.
Bitcoin price breaks through current support area on the daily and through the 20MA
If buyers don’t step in the next couple days, we’ll see Bitcoin retest the previous support in the low $9ks. A break from there likely leads to $8k
The volume of trading has also been significantly low in the past few days.
However, as Bitcoin is testing the 20 MA with a 50% probability of a break-out, Rager is leaning bullish, looking for a break above $12k.
Moreover, on the daily Bitcoin closed below 2% lower than the previous days. According to Sawcruhteez, it sets up for a bearish trend on the sequential. The 50 EMA at $10,315 is currently acting as resistance to Bitcoin in the short term. He also cited the death cross between short term medium term moving averages also indicate a downward movement.
Furthermore, the fear of the break below the descending triangle is growing significantly. Mati Greenspan, the Senior Market Analyst at eToro, also reiterated similar concerns of a break. His bearish targets are somewhere around $7,500-$7,700.
Nevertheless, the increasing hash rate and various other market sentiments are pointing towards an upside. B. Biddles shared a rare instance of a descending triangle breakout. While a break-out in the negative direction occurred, it only lasted for three days. Hence, there was no bearish trend per se. He tweeted,
$btc Descending Triangle at the peak of a bull run, 01 June 2017 – 30 July 2017 (59 days).
Not hopium, just showing that it's foolish imo to think anyone has a clear sense of what happens next (very short-term movements aside) pic.twitter.com/m8TgrDfd61
— B.Biddles (@thalamu_) September 10, 2019
Do you think that a break-out for the descending triangle is imminent? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com