The volatility in Bitcoin’s price continues to remain high as Bitcoin [BTC] continues to showcase up and downturns of about $200. It briefly touched a high at $9013 as the sellers began to pour in looking for a correction.
The 200 Day Moving Average continues to pose a huge resistance to the bulls at $9065. The price of Bitcoin [BTC] at 14: 30 hours UTC is $8780.
The price action on the lower time frames with a potential shooting star, followed by a long bearish candles further validated the bears. Nevertheless, zooming out, the charts reveal a rising wedge, which is a bearish pattern. However, the support and resistance of the pattern is still intact.
Is the Top In?
Bitcoin [BTC] price has risen 40% since its low around $6500 last month. Hence, traders and investors might be looking to take profits as correction seems imminent.
One of the trading plans that has panned out are of derivatives and crypto trader, TraderXO, who planned to catch the point of correction in Bitcoin. He tweeted,
One of the short setups I’m waiting for… Run the highs, close back inside.. blue arrow = trigger… Stop at the swing highs..
He added after the $9000 attempt,
$ – So far so good… want to see this H4 close below range highs and leave in a swing fail… Currently shorted 8950s – 60% position size”
A break below the wedge could drop the price to lows support below $7800-$8000.
However, in case of a bullish move, the resistance from the bottom of the descending triangle around $9300-$9500 will act as strong levels of resistance.
Do you think Bitcoin [BTC] will hold its price above $8800 in to weekly close? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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