Bitcoin is undergoing its fourth consecutive drop today. The depreciation was small over the weekend but have been considerably larger these past two days. The key pattern which is still in play is the descending triangle which has been forming since January. The descending triangle would indicate that price is set to continue its decline towards the $6k mark and drop hard under. In the case of this playing out, the $6k mark would likely turn from support to resistance and price action may struggle to appreciate back above.

However, there are bullish signs as well as bearish. The lows since early January have been mostly recording higher which shows that around $6k may be near the bottom for price action. The recent drops have also been on lower than average volume showing a decrease in strength behind this recent move. RSI has also been forming higher highs and higher lows showing a gradual increase in buying pressure over time.

Bitcoin Daily Chart – Source: Tradingview.com

Some support will be expected if the price drops near to $6250. In the event of a rise, resistance and significant trading activity would be expected between $6750 and $6850. This has been a significant point of trading activity in the past. The hourly MACD is starting to converge to the centerline showing that short-term momentum is starting to shift to the buyers. The outlook is currently neutral.

Bitcoin Hourly Chart – Source: Tradingview.com

Key Takeaways:

  • Descending triangle pattern in play since January.
  • Higher lows on the daily chart since early August.
  • Daily RSI forming higher highs and higher lows.
  • Hourly MACD starting to converge toward the centerline.
  • Outlook is currently neutral.
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.

Follow us on Telegram | Twitter | Facebook

Featured Images are from Shutterstock.

Blokt is a leading independent cryptocurrency news outlet that maintains the highest possible professional and ethical journalistic standards.

LEAVE A REPLY

Please enter your comment!
Please enter your name here