Bitcoin
$42,810.08-0.44%
Ethereum
$2,964.15-2.35%
XRP
$0.934053-0.55%
Cardano
$2.16-1.77%
Polkadot
$27.93-2.25%
Stellar
$0.268343-2.36%
Dogecoin
$0.201321-1.37%
Chainlink
$23.29-4.19%
Uniswap
$22.58-3.50%
Algorand
$1.71-0.94%
Polygon
$1.09-2.15%
Cosmos
$37.49-4.28%
Litecoin
$147.51-1.26%
Bitcoin Cash
$494.75-0.92%
Wrapped Bitcoin
$42,830.55-0.31%
The Graph
$0.670420+0.31%
Filecoin
$60.72+9.83%
Tron
$0.087522+0.50%
Ethereum Classic
$46.09-1.49%
Tezos
$6.10-6.11%
Aave
$276.17-5.09%
Monero
$237.53+2.40%
NEO
$37.91-1.43%
EOS
$3.88-1.34%
IOTA
$1.15-2.54%
BitTorrent
$0.003143-0.93%
Bitcoin SV
$129.77+0.63%
Waves
$22.98-2.66%
Maker
$2,273.29-2.62%
Dash
$156.07-2.71%
Decentraland
$0.671269-4.76%
Decred
$107.00-3.87%
ICON
$1.52-5.86%
OmiseGO
$9.44+5.64%
NEM
$0.142821-1.76%
Zcash
$106-3.62%
Paxos Standard
$1.00-1.59%
Yearn Finance
$29,027.98-3.87%
Ren
$1.04-10.40%
NuCypher
$0.265146-3.19%
Qtum
$9.40-0.31%
Bitcoin Gold
$50.64-2.24%
Basic Attention Token
$0.614310-3.52%
0x
$0.866815-2.17%
Fetch.ai
$0.744872-7.67%
Kava.io
$5.62+0.10%
Bancor
$3.44-2.20%
Band Protocol
$7.13-2.40%
Siacoin
$0.014449-4.09%
Nano
$4.25-5.74%
Loopring
$0.370542+0.75%
Storj
$1.04-2.62%
Numeraire
$39.88-2.43%
Civic
$0.420111-2.76%
Lisk
$2.70-2.35%
PAX Gold
$1,758.94+0.30%
Orchid
$0.311197-1.62%
Enzyme
$148.25-6.26%
Augur
$20.71-1.61%
Aragon
$4.38-3.16%
district0x
$0.146182-0.98%
Kyber Network
$1.41-2.31%
SingularDTV
$0.001224+1.18%
Tether
$1.00+0.00%
USD Coin
$1.00+0.04%
Dai
$1.00+0.02%
Breaking news: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case

$6.6K: Bitcoin Price Eyes New Target for Bull Reversal

A move past a key resistance at $6,675 would confirm a short-term bearish-to-bullish trend change in bitcoin.

Aug 16, 2018
CoinDesk Insights

Bitcoin is showing signs of life, but only a break above key resistance at $6,675 would confirm a bullish reversal, technical charts indicate.

At press time, the leading cryptocurrency is changing hands at $6,470 on Bitfinex – up 10 percent from the 6.5-week low of $5,859 hit on Aug. 14.

However, the break below the key support of $6,000 (February low) was short-lived and prices moved back above $6,100 by UTC close, signaling bearish exhaustion.

More importantly, the follow-through has been positive: BTC crossed Tuesday's high of $6,259 and jumped to $6,649 yesterday, confirming that sellers have likely run dry and bargain hunters are finding the current price too attractive to pass up.

Hence, it seems safe to say that a bullish trend reversal is in progress and would be confirmed if prices take out the inverse head-and-shoulders neckline resistance of $6,675, as seen in the chart below.

Hourly chart

BTC is creating the right shoulder of a inverse head-and-shoulders bullish reversal pattern on the hourly chart.

A move above $6,675 would confirm the sell-off from the July high of $8,507 has ended and would open the doors to $7,490 (target as per the measured height method).

That said, the daily and the 4-hour charts show that BTC could attempt a break above $6,675 in the next 24 hours.

4-hour chart

As seen in the chart above, the cryptocurrency has pierced the descending trendline, meaning the sell-off from the high of $8,507 has ended. The relative strength index (RSI) has also adopted a bullish bias (above 50.00).

Daily chart

BTC created a bullish inverted hammer candle yesterday, adding credence to Tuesday's long-tailed (bear exhaustion) candle and confirming the cryptocurrency has likely bottomed out at $5,859.

View

  • BTC bulls are slowly gaining ground and could attack the inverse head-and-shoulders neckline resistance of $6,675 in the next 24 hours.
  • A break above $6,675, if accompanied by a pick-up in volumes, would confirm a bearish-to-bullish trend change and allow a rally to $7,490. On the way higher, BTC could encounter resistance at $6,924 (50-day moving average), $6,982 (rising trendline hurdle as seen on the daily chart), and $7,162 (100-day moving average).
  • Acceptance below $6,180 (previous day's low) would pour cold water over optimism generated by the inverted hammer candle and would shift risk in favor of a drop below $6,000.

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

Bitcoin image via Shutterstock; Charts by Trading View

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...