Bitcoin Price Drops Out of Bullish Channel, Recovery not Ascertain

Article by · November 8, 2018 ·

Bitcoin is showcasing a less bullish behavior than 24 hours ago, after a declining of an ascending price channel.

Prior to this, the leading cryptocurrency (BTC) moved up to a strong bid at $6,200 on Oct. 31, maintaining the significant 21-month EMA support unchanged. Earlier this week,  it also recorded a symmetrical triangle breakout, which proposes that bulls had won the battle with the bears.

The breakout had appeared legal as the technical indicators have become more bullish. The relative strength index precisely increased to a three-month high of 59.00 yesterday, indicating a strong bullish situation.

For that reason, BTC was believed to well bided beyond $6,500 and appeared possibly to increase to $6,800 in the short-term.

Rather, earlier today on Coinbase, it decreased back to $6,450, thereby nullifying the bullish higher lows and higher highs pattern.

Opinion

  • An increasing channel breakdown may result in the immediate neutralization of the bullish outlook.
  • A more drastic fall to the hourly chart support of $6,372 may be witnessed by BTC. And any violation there would bring about the current low of $6,200.
  • A break above Wednesday’s high of $6,540 level if confirmed, could result to a recovery to $6,800 (October high).

    Leave a comment