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Bitcoin Shows Sign of Life, Still Struggling to Break Out of Downward Channel – Technical Analysis

We are heading towards the final quarter of the year, and the cryptocurrency market is still on a tailspin. Last 2017, it was around this time that the cryptomarket boomed uncontrollably and Bitcoin eventually reached its all-time high. As of the moment, investors have high expectancy that the market will do the same thing in this final quarter, but market sentiment is showing otherwise. As of press time, total market capitalization is at $223 billion, Bitcoin dominance is at 52.3%, and Bitcoin price is hovering around the $6,700 level.

BTC/USD

Looking at the charts (from Trading View), Bitcoin is showing some signs of life, but is still struggling to break out of the downward channel. On the brighter side, Bitcoin price is forming higher lows in the past four dips. The price action broke the MA20, middle Bollinger Band, and is facing multiple resistances at the $6,900 level where there is an overlap of the downward trendline and the 0.618 Fibonacci level. There is also strong resistance around the $7,100 level where the upper Bollinger Band, the 0.786 Fibonacci level, and the downward trendline converge. The MACD crossed over the signal line, which indicates that current momentum is in favor of the upward movements. The RSI supports the upward trend but is currently facing resistance, which indicates that buying sentiments could be going down.

In the short term, Bitcoin price needs to break the descending channel with price above the $6,900 level before we see another strong upward trend. If price action fails to break out of the downward channel, it needs to hold above the $6,100 previous low to maintain a bull run possibility by end of year. Otherwise, a break below the higher lows support line could signal further declines back to the $5,000 levels.

Summary of Key Points:

  • Bitcoin is showing some signs of life, but is still struggling to break out of the downward channel.
  • Price is facing multiple resistances at the $6,900 level where there is an overlap of the downward trendline and the 0.618 Fibonacci level.
  • In the short term, Bitcoin price needs to break the descending channel with price above the $6,900 level before we see another strong upward trend.
  • If price action fails to break out of the downward channel, it needs to hold above the $6,100 previous low to maintain a bull run possibility by end of year.

(DISCLAIMER: This is not financial advice. The analysis and recommendations provided here are based on my own research and personal opinion. Trade wisely!)

Author: Author : Mil

Mil is based out of Philippines and has been writing for cryptonewsbytes.com since 2017. He enjoys doing market analysis on crypto and follows the trends very closely. He is a marketing genius and gets tremendous amount of energy to the team. He enjoys reading books in his spare time and big time into basketball.

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Mil is based out of Philippines and has been writing for cryptonewsbytes.com since 2017. He enjoys doing market analysis on crypto and follows the trends very closely. He is a marketing genius and gets tremendous amount of energy to the team. He enjoys reading books in his spare time and big time into basketball.
Mil is based out of Philippines and has been writing for cryptonewsbytes.com since 2017. He enjoys doing market analysis on crypto and follows the trends very closely. He is a marketing genius and gets tremendous amount of energy to the team. He enjoys reading books in his spare time and big time into basketball.

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