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Bitcoin: Will Breakout of Long Term Trend Line Succeed?

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Bitcoin Nearing Longterm Trendline – Big Breakout Coming?

Bitcoin: Will Breakout of Long Term Trend Line Succeed?

Bitcoin: Will Breakout of Long Term Trend Line Succeed?
CONTENT

  • Resistance levels are located at $ 9600 and $ 10,400.

  • The price has broken the short-term rising support line.

  • BTC has been following a long-term downtrend line since December 2017.

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On April 30, Bitcoin formed a bearish candlestick on the charts with a very long upper wick, very similar to the shooting star pattern, which is considered a bearish reversal pattern.

Bitcoin: Will Breakout of Long Term Trend Line Succeed?

 

In addition, the candlestick was formed at higher trading volumes than the previous bullish engulfing pattern. The boundaries of the intraday range were marked by the levels of $ 9460 and $ 8400.

Shooting star

During the formation of the above candlestick, the resistance area of ​​$ 9,600 was reached, after which a long upper wick appeared on the charts, and the daily close took place well below this level. Also, quotes could not close above the 0.786% Fibonacci retracement level of $ 9200, which was the first falling high since the market crash on February 13.

As trading volumes have increased from the previous bullish candlestick, the recent momentum may signal a reversal. However, the RSI is not signaling bearish divergence yet..

Rising support line

On the hourly chart, the price bounced from the 0.618 Fibonacci retracement level relative to the entire bearish move, as well as from the 50-hour moving average support. The fall was preceded by significant bearish divergence signals from the hourly RSI.

Bitcoin: Will Breakout of Long Term Trend Line Succeed?

Since then, the RSI has been oscillating around the 50 mark, which indicates consolidation. If the price holds above this moving average, then in the future it can make a breakthrough to the highs.

On the 10-minute charts, you can see that the quotes have broken down the ascending support line, which has confirmed its resistance status.

The decline stalled around the 0.618% Fibonacci retracement level at $ 8400 and the price has been rising since then. Also, Bitcoin seems to be following the descending support line (dashed line on the charts). If a token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More breaks this line, then it can start the bullish move mentioned above. That being said, it is unclear if Bitcoin will be able to form a rising high above the $ 9450 level..

Long-term dynamics

In the longer term, the price has been following a long-term downtrend line since reaching all-time highs in December 20177. At the time of this writing, the price was near this line, confirming its status for the fourth time.

This suggests limited growth prospects unless price breaks out in a bullish breakout. If it rallies and closes above the $ 9,500 level, this would mean that quotes have broken through an almost three-year bearish trend and will go to new highs. Until that happens, we believe that bitcoin is moving in line with a bearish trend..

Conclusion

Bitcoin: Will Breakout of Long Term Trend Line Succeed?

So, as a result of the recent rally, Bitcoin has reached an important resistance level, a breakout of which will signal the start of a new bullish trend. However, it is not yet clear whether this breakthrough will succeed..

The previous analysis of bitcoin can be read here.

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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