Although the day, the cryptocurrency, Bitcoin, has been in bullish territory but breaking the long-term daily trendline has remained elusive.
The cryptocurrency needs a sustained break above that trendline to signal that the currency has bottomed out. For now the risk of a sell-off is still very much in play. Trendline resistance stands at $8,285.
Before press time, the currency has been testing that region and changing hands dramatically with $8,226. The next few hours of the day will determine which direction the currency goes.
The above daily chart shows that bitcoin is trading at an indecisive range but still holding well above the 10-day moving average currently sitting at $7,820.
Price action history shows that crypto traders have accepted a value above $8,000 after a repeated rebound from $8,000 mark. That region will now serve as a resistance hurdle downward. It is pretty safe to say the outlook remains bullish.
However, to keep the bulls in the game a continued and sustained break above the falling trendline must happen. Take note that bitcoin failed to cross that line on April 17th, another rejection now will be costly for the bulls.
There is a head and shoulder reversal pattern showing up on the 4-hour chart with neckline support at $7,830. If BTC fails to take out the neckline hurdle then we should see high odds of a drop below $7,830 in the coming hours.
A bearish reversal pattern would open up the doors to further decline to $7,510 and even $7,200. This move will be short lived as all major moving averages(50-day, 100-day and 200-day) are all trending northwards. We should see BTC cross over the trendline resistance soon.
• A sustained move above key $8,300 would open the doors to $8,800 confirming a bearish to bullish reversal pattern.
• Resistance at that level would increase the odds of a drop towards $7,510-$7,200
This ICO information is just for the interest of Crypto Lovers and should not be considered as investment advice. If you want to take this opportunity, then invest only what you can afford.
