Yesterday was a bloodbath for altcoin prices with many recording double-digit losses. Bitcoin managed to hold its value and has been trading around $6300 to $6400 over the past few days. There was a brief drop down close to $6100, but the price quickly rose back up showing investors were not yet willing to accept such a low valuation. Today, we are seeing some movements up with price currently trading around $6450.
The key pattern to take into account is the bearish descending triangle pattern which has been in play since January. If the upward movement we are seeing today continues and picks up momentum, it is likely to meet strong resistance as it approaches the downward trendline of the descending triangle pattern. The MACD is starting to converge slightly showing that selling pressure is falling off. Price and RSI are also after forming a higher low showing the buying pressure is beginning to increase.
Hourly price action is currently trading at the 200EMA. The MACD is diverging away from the centerline to the upside on the hourly showing that the buyers are in control for short-term trading. However, the 200EMA may act as resistance.
$6240 has been an important support level and in the event that price breaks below this point, $6100 will be another important support. To the upside, $6750 to $6850 is likely to provide a lot of resistance. The outlook is currently neutral. Although the last two weeks have been extremely bearish, price action and technical analysis are showing some positive signs today.
- Bitcoin held value while the rest of the market was falling.
- Briefly dropped to $6100 but quickly recovered.
- Currently trading at hourly 200EMA.
- $6240 is an important support level.
- $6750 to $6850 are areas of resistance.
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