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.
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.
- 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.
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