Bitcoin Price Eyes Move to $6.8K After Bull Breakout

Omkar Godbole
Nov 5, 2018 at 11:00 UTC
Updated Nov 5, 2018 at 16:41 UTC
markets

Bitcoin could be about to make a move towards $6,800, having witnessed a bullish breakout yesterday.

The leading cryptocurrency, which had been in a narrowing price range, moved upwards to close at $6,423 yesterday, confirming an upside breakout of the symmetrical triangle pattern.

With the move, the bulls look to have come out victorious in a months-long tug-of-war with the bears. However, BTC is struggling to find acceptance above the immediate resistance of the 50-day exponential moving average (EMA), currently at $6,450.

The EMA hurdle might be crossed in a day or two, though, as the ethereum-bitcoin exchange rate (ETH/BTC) is looking north, marking rising demand for alternative cryptocurrencies.

At press time, BTC is changing hands at $6,400 on Coinbase, having clocked a high of $6,440 earlier today. The cryptocurrency is up 1 percent on a 24-hour basis and is largely unchanged week-on-week.

Daily chart

The symmetrical triangle breakout seen in the above chart indicates scope for a re-test of recent highs above $6,800.

That target looks achievable as the breakout is backed by a bullish crossover on the moving average convergence divergence (MACD). Further, the relative strength index is holding in bullish territory just above 50.00.

ETH/BTC daily chart

The falling channel breakout and a convincing move above the former support-turned-resistance of 0.031994 (Sept. 25 low) indicates a bearish-to-bullish trend change.

The rising MACD histogram is suggesting that further gains could be in the offing. The RSI of 53.00 is biased toward the bulls.

Thus, ETH/BTC looks set to rise in the near future.

View

  • Both BTC and the ETH/BTC are looking north after the technical breakout.
  • An increased risk appetite is seen lifting BTC above the 50-day EMA of $6,450. That would open the doors for a sustained rally to $6,810 (Oct. 15 high).
  • The short-term bullish outlook in BTC would be invalidated if prices see a UTC close below the Oct. 31 low of $6,200.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via CoinDesk archives; charts by Trading View 

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.