2018-8-28 17:27 |
Last week was a bullish week for Bitcoin as both price and RSI continued to form higher highs and higher lows. The MACD is currently fast approaching a centerline crossover which will be a strong bullish indicator. But we also have a clear head and shoulders pattern forming along with a descending triangle. These are two very bearish patterns, and if they follow through, a fall towards $6k could create a bloodbath for the price.
The descending triangle has been in play since January, and we currently have the right shoulder of the head & shoulders pattern being formed. The downward moving averages would support the bearish outlook as they may serve to provide resistance in the case of an upward movement. However, as long as price continues to form higher highs and higher lows along with RSI, the bullish movement could continue. Any drops have been on low volume which would support a continuation of the bullish move we have been seeing.
Bitcoin Daily Chart$6750 to $6850 is an important level for trading with a lot of liquidity and resistance taking place here in the past. The longer price action trades here, the weaker this are will become with progressively fewer sellers each time. At the moment, the price is currently trading just above $6700. A critical support level is $6240 which has acted as support for numerous drops. The hourly 50, 100, and 200EMA are likely to serve as support before price would drop as far as $6240. For the moment, the outlook is neutral. A break above $6850 would be strongly bullish. A break below $6240 would be strongly bearish.
Bitcoin Hourly ChartKey takeaways:
Outlook is currently neutral Both bullish signs and bearish signs in play Head and shoulders pattern along with descending triangle would indicate returns below $6k Higher highs and higher lows in price and RSI along with a converging MACD would indicate further increases in price Important levels include $6240 as support and $6750 to $6850 as resistance 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.Bearish Outlook for Price of Bitcoin With Head & Shoulders Pattern Forming? was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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