Bitcoin
$48,346.39+2.30%
Ethereum
$3,455.96+1.26%
XRP
$1.08+1.18%
Cardano
$2.38+1.10%
Polkadot
$35.06+3.93%
Stellar
$0.321827+0.99%
Dogecoin
$0.241704+0.12%
Chainlink
$28.65+1.60%
Uniswap
$24.46-0.84%
Polygon
$1.38+1.39%
Litecoin
$181.39+0.68%
Bitcoin Cash
$629.06+0.76%
Algorand
$2.09+9.21%
Cosmos
$38.86+16.00%
Wrapped Bitcoin
$48,379.39+2.17%
Filecoin
$84.39+1.09%
The Graph
$0.843414+2.56%
Tron
$0.106229+0.69%
Ethereum Classic
$57.34+1.14%
Aave
$358.02-1.56%
Tezos
$6.57+5.28%
EOS
$5.39+1.64%
NEO
$49.76+1.54%
Monero
$271.00+3.59%
IOTA
$1.65-0.73%
BitTorrent
$0.003950+0.56%
Bitcoin SV
$158.74+0.81%
Waves
$29.11+0.67%
Maker
$2,845.30+1.82%
Dash
$202.10+1.83%
Decred
$144.64-1.16%
Decentraland
$0.824265+0.50%
ICON
$1.92+0.41%
NEM
$0.184580+0.20%
Zcash
$139.24+3.24%
Qtum
$12.56-0.10%
NuCypher
$0.331174+1.05%
Bitcoin Gold
$66.47+0.83%
Yearn Finance
$34,121.28+1.57%
OmiseGO
$8.73+3.61%
Basic Attention Token
$0.760542+0.99%
0x
$1.13+5.17%
Paxos Standard
$1.00+0.96%
Ren
$0.981006+4.29%
Fetch.ai
$0.838193-2.12%
Bancor
$4.10+1.30%
Band Protocol
$9.39+2.62%
Siacoin
$0.019026+4.02%
Kava.io
$6.27+2.20%
Nano
$5.48+1.68%
Loopring
$0.455323-0.17%
Storj
$1.39+0.45%
Civic
$0.535166-1.63%
Lisk
$3.57-0.40%
Numeraire
$47.10+8.93%
Orchid
$0.367154+0.70%
PAX Gold
$1,765.16+0.23%
Augur
$26.49+1.55%
Aragon
$6.54+13.97%
Enzyme
$120.24+6.42%
district0x
$0.178851+3.27%
Kyber Network
$1.82-1.23%
SingularDTV
$0.001480-4.53%
Tether
$1.00-0.00%
USD Coin
$0.999955-0.02%
Dai
$1.00-0.04%

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...