Our website needs some good Author. Who can write Cryptocurrency and Blockchain related article. If anyone is interested writing article in our website, please SignUp.

Bitcoin Teases Bull Move After Defense of Key Price Support

November 12, 2018 at 11:00 AM | By Jit Sutradhar Feature

Bitcoin could be in for a recovery rally, having defended a key support level over the weekend.

Looking back, the leading cryptocurrency suffered an ascending channel breakdown on Nov. 7, signaling a temporary top has been made at $6,540. On the following day, the moving average studies rolled over in favor of the bears, bolstering the already negative technical setup.

As a result, BTC was expected to beat the support of the trendline connecting the Oct. 11 low and Oct. 31 low and drop to $6,200 over the weekend. Instead, it carved out a higher low (bullish pattern) at $6,270 yesterday. More importantly, the bears failed to secure a sustained break below that rising trendline.

At press time, BTC is changing hands at $6,360 on Coinbase and the ascending trendline support is located at $6,300.

While the rebound from the ascending trendline is encouraging, a bullish reversal would be confirmed once prices set a higher high with a move above $6,540.

1-hour chart


As can be seen above, BTC charted a second higher low along the rising trendline yesterday, saving the day for the bulls.

Further, it is currently creating the right shoulder of the inverse head-and-shoulders bullish reversal pattern. A break above the neckline resistance of $6,390, if confirmed, would pave way for $6,510 (target as per the measured height method).

A bull breakout could happen in the next few hours as the prices have bounced nicely off the trendline support. The major exponential moving averages (EMAs) – 50, 100 and 200 – have shed bearish bias (are flatlined).

What’s more, a key indicator on the 4-hour chart is also favoring an upside move.

4-hour chart


Over on the 4-hour chart, the bullish divergence of the moving average convergence divergence (MACD) histogram is indicating that the sell-off from the last week’s high of $6,540 has likely run its course and a stronger recovery could soon unfold.

A bullish divergence is confirmed when BTC records a lower low and the MACD records a higher low.


  • The immediate bearish outlook stands neutralized.
  • The recent highs above $6,500 could be put to test if prices take out the inverse head-and-shoulders neckline hurdle of $6,390.
  • Acceptance under the bullish trendline support on the hourly chart would signal a resumption of the drop from $6,540 and could yield a test of the major psychological support of $6,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via CoinDesk archives; charts by Trading View


Article Source: http://www.coindesk.com

Comments (0)

    Write a Reply or Comment

    You must be Logged In or Sign Up to post a comment.