Bitcoin
$43,174.87+2.03%
Ethereum
$3,002.37+4.77%
XRP
$0.940631+0.35%
Cardano
$2.25-4.66%
Polkadot
$29.14-3.39%
Stellar
$0.275341-0.13%
Dogecoin
$0.205058-1.01%
Chainlink
$24.71+9.88%
Uniswap
$23.33+20.08%
Polygon
$1.13+0.92%
Algorand
$1.72-2.02%
Cosmos
$38.23-5.11%
Litecoin
$151.15+1.00%
Bitcoin Cash
$513.08+0.52%
Wrapped Bitcoin
$43,182.50+1.76%
The Graph
$0.678681-0.13%
Tron
$0.087946-3.17%
Ethereum Classic
$46.85-0.19%
Filecoin
$54.83-10.86%
Tezos
$6.80-3.07%
Aave
$294.05+6.48%
Monero
$232.22-2.52%
NEO
$38.42-2.13%
EOS
$3.91-1.59%
IOTA
$1.20-3.18%
BitTorrent
$0.003190-1.88%
Bitcoin SV
$129.42-3.91%
Maker
$2,461.09+9.01%
Waves
$23.85-1.68%
Dash
$161.94-1.82%
Decentraland
$0.712292+3.56%
Decred
$113.28-2.57%
ICON
$1.64+4.66%
NEM
$0.146081-1.28%
Zcash
$111.23+1.70%
OmiseGO
$8.71-1.65%
Paxos Standard
$1.00-0.50%
Yearn Finance
$30,505.04+2.53%
NuCypher
$0.275989+0.13%
Ren
$1.00-11.69%
Qtum
$9.46-2.53%
Fetch.ai
$0.846470+5.96%
Bitcoin Gold
$51.69-3.77%
Basic Attention Token
$0.639923-0.48%
0x
$0.885207-1.45%
Kava.io
$5.68-5.14%
Bancor
$3.51+2.76%
Band Protocol
$7.42-0.05%
Siacoin
$0.015038+2.53%
Nano
$4.52-4.32%
Loopring
$0.366628-4.06%
Numeraire
$41.62-2.36%
Storj
$1.05-2.60%
Civic
$0.434673-4.54%
Lisk
$2.79-5.65%
Orchid
$0.314870-1.70%
PAX Gold
$1,755.66+0.00%
Enzyme
$148.52+12.23%
Augur
$21.04-4.90%
Aragon
$4.47-7.61%
district0x
$0.146524-2.87%
Kyber Network
$1.47+2.13%
SingularDTV
$0.001188-6.46%
Tether
$1.00-0.02%
USD Coin
$1.00-0.01%
Dai
$1.00-0.00%

Bitcoin Teases Bull Move After Defense of Key Price Support

Bitcoin could be in for a recovery rally, having defended a key support level over the weekend.

Nov 12, 2018
CoinDesk Insights

Bitcoin could be in for a recovery rally, having defended a key support level over the weekend.

The leading cryptocurrency has been looking bearish over the last week. It suffered an ascending channel breakdown on Nov. 7, suggesting a temporary top had been created at $6,540, while the moving averages rolled over in favor of the bears a day later.

As a result, BTC looked likely to drop below the support of the trendline connecting the Oct. 11 and Oct. 31 lows, and move toward $6,200 over the weekend.

Instead, though, it carved out a higher low (bullish pattern) at $6,270 yesterday. More importantly, the bears failed to secure a sustained break below that rising trendline.

At press time, BTC is changing hands at $6,360 on Coinbase, while the ascending trendline support is located at $6,300.

While the rebound from the ascending trendline is encouraging, a bullish reversal would only be confirmed if prices move above $6,540 to set a higher high.

1-hour chart

As can be seen above, BTC charted a second higher low along the rising trendline yesterday, saving the day for the bulls.

BTC is also currently creating the right shoulder of an inverse head-and-shoulders bullish reversal pattern. A break above the neckline resistance of $6,390, if confirmed, would pave way for a move to $6,510 (target as per the measured height method).

The major exponential moving averages (EMAs) – 50, 100 and 200 – have shed bearish bias (are flatlined) too. So, a bull breakout could happen in the next few hours as the prices have bounced nicely off the trendline support.

4-hour chart

Over on the 4-hour chart, the bullish divergence of the MACD (moving average convergence divergence) histogram is indicating that the sell-off from the last week's high of $6,540 has likely run its course and a recovery could soon unfold.

A bullish divergence is confirmed when an asset records a lower price low and the MACD records a higher low.

View

  • The immediate bearish outlook has been neutralized.
  • Recent highs above $6,500 could be put to the test if prices pass the inverse head-and-shoulders neckline hurdle of $6,390
  • Acceptance below the trendline support on the hourly chart would signal a resumption of the sell-off from $6,540 and could yield a test of major psychological support at $6,000.

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

Bitcoin image via CoinDesk archives; 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...