BITCOIN PRICE ANALYSIS: THE BIGGER THE BASE, THE HIGHER THE SPACE?
Bitcoin continues to trade near yearly lows and many investors are taking comfort in the popular saying, ‘The bigger the base, the higher the space.’ but has the digital currency actually found a bottom yet?
This week BTC $6844.83 +0.02% struggled to break above the descending triangle bottom and so far has traded in a tightening $400 range. Later in the day, Bitcoin dipped below the 20MA and short-term technical charts remain biased toward bears.
The neckline of last week’s double bottom near $6,250 now serves as a support and a decline beneath this point would be problematic.
At the same time, an inverse head and shoulders formation is
beginning to appear and if BTC continues to decline below the 20 and 50-MA the right shoulder of the H&S pattern would be complete and BTC could make a quick leap from $6,050 to the descending triangle bottom at $6,705.
To date, the general consensus amongst those in the ‘learned’ community is that BTC has yet to bottom and barring a high volume move above $6,705 that is sustained for longer than a day or two, BTC is more likely to decline than gain over the short term.
Follow me on
Twitter: https://twitter.com/cryptoexpert20
Comments
Post a Comment