- A four-month falling trendline proved a tough nut to crack during Asian trading hours and reverse this bitcoin rise from $ 9,200 to $ 9,500. prospects, however, will turn bearish only under the aegis of an average of 200 days at $ 9127.
- Pullback from $ 9,500 to $ 9,200 do not have the support and the volume could be short-lived.
- A high volume UTC closes above $ 9470 is required to confirm the upside break of the multi-month falling trendline and opening the door for $ 13 880 (2019 high).
- Acceptance below its 200-day MA will weaken the bullish soon. The resulting sell-off to $ 8,500, if any, is likely to be temporary.
(BTC) Bitcoin’s struggle continued with the bullish trendline breakout fall capping gains for the fifth time in 11 days.
The cryptocurrency on red is currently trading at close to $ 9,300 on Bitstamp, have faced rejection near $ 9470 – the resistance of a trendline connecting the June 26 and August 6th highest – during Asian trading hours.
Four months downward sloping trendline from the 2019 high of $ 13 880 first came into play on Oct. 26. On that day, the high clock rates of $ 10,350, but failed to score close above the resistance UTC.
The same price action seen in the next two days and on Monday, when the price rose from $ 9,200 to one-week high of $ 9586 but failed to beat the obstacles trendline.
Repeated failure to scale multi-month downtrend line may force some investors to question the sustainability of recent gains from five-month lows under $ 7,500.
However, such concerns may be premature, because the price is still holding above its 200-day MA support, a barometer of long-term market trends, as seen in the chart below.
BTC is again struggling to get past the down trendline, currently at $ 9470. However, it is early to call a bearish reversal, as the 200-day MA at $ 9127 support is still intact.
the average has limited downside since October 30, after working as resistance several times a day for 11 Oct 16
All-in-all, BTC was sandwiched between support long-term average and the trendline resistance falls.
A high volume UTC closes above $ 9470 is required to confirm the upside break of trendline falling. That would mean the return of the bull market from lows near $ 4,100 seen in early April and opened the door for the resistance at $ 13 880.
On the downside, the reception below its 200-day MA of long-held support at $ 9127 is likely to invite strong selling pressure, leading to a drop to $ 8,500.
A bullish breakout seems possible, as cryptocurrency tend to take a strong bid next six months reward halving, as discussed last week.
Note that the latest pullback from the $ 10,350 shortfall volume support. Basically, it is a bull of breath and can be reversed.
BTC jumped from $ 9273 to $ 9586 in 60 minutes 22:00 UTC on Monday by buying volume (green bar) reached its highest level since October 31
Indeed, the spike has been erased by the price fell to $ 9165 a few hours ago, but with a weak trading volume. Therefore, the possibility of BTC climb back up to highs near $ 9,600 can not be ruled out.
Disclosure: The author does not hold cryptocurrency assets at time of writing.
Bitcoin image via Shutterstock; charts by Trading View