2018-9-20 17:26 |
Last week saw Bitcoin undergo a steep drop where price depreciated from around $7400 to support at $6100, a 17% decline. Although the price is still trading near its lows of 2018, the outlook is looking slightly more bullish this week. The drops have been on lower volume showing less strength from the sellers. Price also looks like it is after pricing at a higher low which is a really strong sign for price action.
The RSI has been forming a sequence higher lows also, indicating that buyers are not yet willing to accept lower valuations of Bitcoin. The descending triangle pattern is still in play, so a rise in price is likely to meet strong resistance around $6800. The descending triangle pattern has been forming since January. Price is currently trading around $6300.
Bitcoin Daily Chart – Source: Tradingview.comOne of the more bearish aspects of current price action can be seen on the hourly. Price action is prone to steep drops after prolonged bullish price action. After long spells of bullish movements, the price has been seen numerous times to undergo large depreciation as sellers rush into the market. This should make traders and investors extremely cautious if looking to take positions on any of the bullish technical analysis. The outlook is currently near-term bullish but longer-term neutral.
Bitcoin Hourly Chart – Source: Tradingview.com Key Takeaways: Price appears to be forming a higher low after an extremely bearish last week for price action. Price action has been subject to steep downturns so traders should be cautious of acting on bullish signs. Descending triangle pattern still forming since January, heavy resistance expected around $6800 in the event of a price rise. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Bitcoin Forming Higher Low After Steep Price Drop? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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