BITCOIN FORECAST: BTC PRICE ACTION COILED LIKE A SPRING SET TO SNAP – BREAKOUT TRADE LEVELS TO WATCHBitcoin costs have drifted de
BITCOIN FORECAST: BTC PRICE ACTION COILED LIKE A SPRING SET TO SNAP – BREAKOUT TRADE LEVELS TO WATCH
- Bitcoin costs have drifted decrease for the reason that advance off of March’s base pale final month
- BTC worth motion is underpinned by a Bollinger Band squeeze and potential pennant sample
- The cryptocurrency could possibly be on a cusp of its subsequent leg increased following its latest consolidation
Bitcoin efficiency is on tempo for an additional sturdy 12 months with BTC costs buying and selling greater than 25% increased since January’s opening degree. After succumbing to a pointy selloff alongside virtually all asset courses late February and early March, which got here amid peak market turmoil induced by the coronavirus pandemic, the value of Bitcoin staged an unbelievable 100% rally.
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That inflow of Bitcoin shopping for strain helped propel BTC/USD again above the $10,000-price degree by June, however over the past six weeks, the cryptocurrency has since retraced a few quarter of its newest bullish leg. Owing to the modest pullback, Bitcoin is at present buying and selling barely above the $9,000-price zone on steadiness.
BITCOIN PRICE CHART: DAILY TIME FRAME (20 FEBRUARY TO 15 JULY 2020)
Chart created by @RichDvorakFX with TradingView
On that notice, a bullish pennant sample might need developed from the latest consolidation in BTC worth motion. Pennant chart patterns are fashioned by a string of decrease highs and better lows as worth coils right into a tightly-wound spring. Pennants usually take form after massive directional strikes and doubtlessly point out the onset of broader development continuation.
| Change in | Longs | Shorts | OI |
| Every day | -1% | 2% | 0% |
| Weekly | -5% | 3% | -4% |
BTC costs now method a ‘break of necessity’ because of the convergence of bearish and bullish trendlines, that are recognized by a sequence of decrease highs and a sequence of upper lows recorded since Might 10. Seeing that pennant sample breakouts can sign development resumption, Bitcoin is perhaps on the verge of one other sharp advance, significantly if the crypto can surmount its negatively-sloped trendline.
BITCOIN PRICE CHART: DAILY TIME FRAME (08 APRIL TO 15 JULY 2020)
Chart created by @RichDvorakFX with TradingView
Bitcoin costs compressing right into a tighter vary over latest weeks could be highlighted utilizing Bollinger Bands as properly. A Bollinger band squeeze, indicated by declining Bollinger Band width since Might 08, echoes the continued consolidation in BTC worth motion. Additionally, it seems that the decrease channel line has offered added technical assist to the value of Bitcoin since June 27.
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That is indicated by BTC costs displaying improved buoyancy in relation to the underside Bollinger Band as each day candlestick wicks stay more and more contained by the decrease barrier on a proportion foundation. That mentioned, the 50-day transferring common might hinder Bitcoin bulls making an attempt to push worth increased. Alternatively, eclipsing this technical barrier round $9,400 may open the door for a topside breakout towards year-to-date highs, which is a bullish state of affairs that might garner extra credence if adopted by a Bollinger Band enlargement.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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