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Will BTCUSD Break the $7,000 Resistance Level?

September 28, 2018 at 15:05 by Arathur Stephen

The BTCUSD pair is breaking out of its triangle consolidation pattern. However, the pair might still encounter some bearish pressure. Will BTCUSD break the $7,000 resistance level? The following technical analysis reveals.

Bitcoin price on Friday has seen trading with modest gains of 2.62%, as the price action is yet to establish committed conversation in the trend. The chart shows that Bitcoin price has moved by $163 (+2.52%), with a total volume of over $489 million in last day. Today, the highest price was $6,806 at 6:00 GMT.

Recently, Bitcoin price formed lower highs and higher lows to consolidate in a symmetrical triangle. The price seems to have completed an upside breakout, indicating that more gains are underway. However, technical indicators, are signaling a slowdown in bullish momentum.

The 100 SMA line is still below the long-term 200 SMA line to signal the path of the least resistance is to the downside. That is to say, there is still a possibility for bearish momentum to return and prove the break higher was false.

Bitcoin price is trading above the 200 SMA dynamic inflection point which reflects stronger bullish pressure. This could spur a bullish crossover, especially since it seems the MA are just oscillating. That being the case, the price is likely to hike as the chart formation, which ranges from $6,000 to around $8,400 levels.

Yesterday, Bitcoin completed a three inside up candlestick reversal pattern which indicates the Bullish reversal. This pattern is a more reliable addition to the standard Harami pattern. A bullish Harami pattern occurs in the first two candles followed by the third candle which is a white candle with a higher close than the second candle. Hence, the pattern is a confirmation of the bullish trend reversal.

According to Fibonacci retracement charts, Bitcoin is trading above the 61.8% Fibonacci retracement zone and a break above the 78.6% Fibonacci retracement, i.e., might encourage more buyers.

Additionally, RSI(14) for Bitcoin is to the neural side and ATR(14) signals the coin volatility remains low, thus, trading the BTCUSD pair became safe for the traders to occupy this position till the price goes bullish towards the $7,000 levels.

Furthermore, traders should be in expectation of a bullish rally towards $7,000-$7,200 in the upcoming days.

RSI (14) value is near 50 which signals “Neutral”
William%R signals the buying price action on daily time-frame.
MACD (12,26) – “Buy” signal in daily charts.
ATR (14) suggests Bitcoin is less volatile.

Bitcoin Pivot Points

The sentiment around the cryptocurrency market appears to be turning bullish again, following a couple of positive industry updates mentioned in our yesterday’s analysis.  The number one Digital coin has seen its price dropped by more than 50 percent this year as regulatory crackdown and a rejection of nine Bitcoin ETFs by the US Securities and Exchange Commission (SEC).

If you have any questions and comments on Bitcoin today, use the form below to reply.

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