Bitcoin looks set to explore a move towards $15,000 levels in the next 24 hours.
Having defended $13,000 on Friday, CoinDesk's Bitcoin Price Index rose to a high of $14,536 on Saturday before once more retreating to $13,051.59 yesterday. As of writing, bitcoin is trading at $13,727 levels – up 0.80 percent in the last 24 hours.
Meanwhile, data source OnChainFX says the world's largest cryptocurrency by market capitalization has depreciated by 11 percent on a weekly basis. The decline is being largely attributed to fears of cryptocurrency trading ban at South Korean exchanges – a possibility that is looking less certain after new statements from the government.
Despite those concerns, bitcoin (BTC) still managed to defend the ascending trendline (drawn from Nov. 13 low and Dec. 22 low).
Further, it appears that money is being rotated out of the alternative currencies and back into bitcoin. For instance, the TRON token has depreciated by 31 percent in the last 24 hours. A look at the individual markets shows sharp losses in the TRX/BTC (TRON-bitcoin) pair. The decline across such cross-cryptocurrency pairs could limit the downside in bitcoin.
The price action analysis indicates scope for a move higher to the upward sloping 50-day moving average (MA) level of $14,690.
The above chart (prices as per Coinbase) shows:
- BTC continues to defend the rising trendline (drawn from Nov. 13 low and Dec. 22 low).
- The 5-day and 10-day MAs slope downwards, while the 50-day MA favors the bulls.
- Triangle pattern (narrowing price range due to lower tops and higher bottoms).
- Repeated failure on the part of the bears to cut through trendline support adds credence to the bullish (upward sloping) 50-day and 10-week MAs, and could yield a rally to $14,690 (50-day MA) or even $15,000.
- Further gains will face resistance, courtesy of the bearish short-term moving averages (5-day and 10-day MAs).
- A close (as per UTC) above $16,000 (triangle resistance) would indicate the rally from Nov. 12 low of $5511.11 has resumed. Prices could then have potential to revisit record highs of $20,000.
- On the other hand, if prices close (as per UTC) below $12,500 (Dec. 30 low) bitcoin may be looking down towards $10,000–$8,000.
image via Shutterstock
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