- Bitcoin repeated defense of the support an average of 200 days indicates the end of the withdrawal of $ 10,350 and the scope for a bounce to the 100-day average at $ 9601.
- A close above that level UTC and further gains above $ 10,000 can not be ruled out, as the latest pullback from the $ 10,350 shortfall volume support.
- Acceptance under the hourly chart support at $ 8977 would weaken the case for mental in the next 24 hours.
Bitcoin looks primed to bounce price of $ 9,600, having repeatedly defended the long-term support in the last 72 hours.
Cryptocurrency on the market value started the week on a negative note with shedding 3.56 percent on Monday. Specifically, BTC formed a candlestick with a long upper shadow in the day, exhausted shoppers signal and open the door to a deeper decline for the former resistance-turned-support at $ 8820.
So far, however, the downside has been limited to about the 200-day moving average (MA), is widely tracked barometer of long-term market trends.
cryptocurrency which slipped to $ 8985 on Thursday, below its 200-day MA, but soon recovered. On the same line, under lock dip Tuesday the average is shallow and short-lived.
Similarly, BTC came close to testing the MA at $ 9046 during Asian trading hours today before jumping back to the highest level near $ 9,200.
repeated defense of the great support shows a low volume pullback from a high of $ 10,350 until last Friday was likely to end and the risks tilted upward.
In writing, BTC changed hands at $ 9.120 on Bitstamp, representing a 0.40 percent gain on a 24 hour basis.
BTC defend the 200-day MA for the third consecutive day.
cryptocurrency which formed a doji candle on Thursday, which happens when the market witnesses a two-way business and the day near the flat end (UTC). Typically, the candlestick pattern is taken as a sign of confusion in the marketplace.
The latest pattern, however, has emerged following a pullback to $ 1,000 from $ 10,350 and represent confusion or fatigue between sellers near the 200-day MA support.
As a result, bounce, perhaps to the 100-day MA at $ 9601, maybe soon in the next 24 hours or more.
Note that trading volume dropped as prices pulled back from $ 10,350 to $ 9000. A low volume pullback often upside down, so that, the rally all the way back to $ 10,350 could be on the cards.
Bitcoin has failed three times in six days closing above the 100-day MA. Therefore, if the bulls can pull off near UTC on average, is likely to invite a stronger buying pressure and causing movement of over $ 10,350.
Bitcoin jumped 28 percent in three days to Oct.27, reinforces a bullish outlook presented by the 100-candle MA moves above the 200-candle MA (bull cross) was confirmed in mid-October.
Furthermore, a sharp rise was also supported by the highest trading volume since February 2018. The path of least resistance, therefore, is on the higher side.
Case to go up to $ 9,600 in the next 24 hours will weaken if the horizontal line support at $ 8977 seen in the chart above are violated with strong volume.
It will expose the support line at $ 8820 (11 Oct high). No violations would prove costly as the next major support line near $ 8,400 immediately.
Disclosure: The author does not hold cryptocurrency assets at time of writing.
Bitcoin image via Shutterstock; charts by Trading View