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Bitcoin price stalled after parabolic rally

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BITCOIN Goes Parabolic Like in 2017!!!! | But You should NOT SELL IT!!

Bitcoin price stalled after parabolic rally

Bitcoin price stalled after parabolic rally
CONTENT

  • Bitcoin moves along the line of parabolic upward support.

  • Technical indicators began to show signs of weakening.

  • The price is likely to be inside a symmetrical triangle.

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After a dizzying rise, Bitcoin began to slip and formed the Spinning Top candlestick pattern. Price is showing weakness, but bearish breakout has not yet been confirmed.

Bitcoin moves along parabolic support

The bitcoin (BTC) rate has been moving along the line of parabolic upward support since the beginning of September. At the time of writing the analysis, it was trading directly above this line.

Having formed a bullish candlestick earlier, on November 18, Bitcoin continued it with the formation of the Spinning Top pattern. Traditionally, it indicates market indecision, especially when it appears on the chart after such an aggressive uptrend..

Bitcoin price stalled after parabolic rally

In addition, the market is in the process of completing the evening star pattern (highlighted in the chart). It will be possible to talk about the completion of the pattern if it closes below $ 16,700 – the opening price on November 17 (red line).

Such a decline will also lead to a bearish breakout of the parabolic support line..

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Schedule BTC. Source: TradingView

Technical indicators on the daily chart began to show signs of weakness. The RSI is giving signals for bearish divergence, and the Stochastic Oscillator may be preparing to form a bearish crossover.

The MACD indicator, meanwhile, has gone quite far, but has not yet begun to decline.

All these signs may bode potential weakening of Bitcoin, however, they do not yet confirm the downtrend. A bearish breakout of this line may cause a bearish crossover and a decline in MACD and RSI, confirming a reversal.

Schedule BTC. Source: TradingView

Short-term dynamics

On shorter-term charts, the price is trading within a symmetrical triangle and is currently at the support line of this pattern. In addition, the market is holding within the support area of ​​$ 17,550.

A bearish breakout from the triangle could send Bitcoin towards $ 16,770 (0.618 Fib level of the last decline retracement). Also, horizontal support and the target level of the projection of the triangle length to the breakout point pass here..

Schedule BTC. Source: TradingView

Bitcoin price stalled after parabolic rally

If this support area holds and the price makes a bullish breakout from the symmetrical triangle (red line), the BTC rate could absorb the high of November 17 and head towards the all-time high around $ 19,500.

However, at the time of writing, this scenario seems unlikely..

Schedule BTC. Source: TradingView

Conclusion

Thus, the bitcoin rate formed the Spinning Top candlestick pattern and stalled after an aggressive growth. The price is trading within a short-term symmetric triangle, and the most likely direction to exit from it is now a bearish breakout.

You can read the previous Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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