Bitcoin Chart Nears Breakout Point
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Bitcoin Chart and Talking Points
- Bitcoin descending triangle may produce a sharp reaction.
- Cryptocurrency market remains weak with good news scarce.
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Bitcoin Descending Triangle Nears Breakout Point
Bitcoin remains below the down channel started from the December 17 high near $20,000 as investors continue to shun the cryptocurrency market in 2018. And BTC is also facing an inflection point as the upward channel from the February 6 low near $6,000 converges with the downward channel, normally the sign of an upcoming breakout, traditionally to the downside. The chart also reveals that the 50-day and 200-day moving averages are about to cross – the 50-day moving below the 200-day – another bearish technical signal. An upside breakout and close above the down channel around $8,500 may provide short-term relief, while to the downside the February 6 low remains in sight.
The latest IG Client Positioning Report also provides another bearish indicator with traders remaining net-long Bitcoin. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Bitcoin-bearish contrarian trading bias.
Bitcoin (BTC) Price Chart Daily Time Frame (September 29, 2017 – March 28, 2018)
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What’s your opinion on Bitcoin – bullish or bearish? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at email@example.com.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.