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Bitcoin has returned to consolidation mode because it has formed lower lows and lower lows in another symmetrical triangle pattern. The price is approaching the peak of the formation, so a breakout may soon occur.
Moving averages are still in fluctuation to reflect the range-bound action, barely providing some strong directional indication at the moment. Stochastic is aiming higher, so there may be some bullish pressure. Likewise RSI is turning higher without reaching oversold conditions, indicating that the bulls are eager to return.
In this case, the bitcoin that closes above the upper triangle around $ 6.400 may be enough to confirm an upward break that could be followed by an uptrend. This could last at the same height as the chart model, which ranges from $ 6,000 to about $ 7,400. On the other hand, a break below the support of around $ 6,200 could lead to a fall in the same size.
Bitcoin has had a mainly positive trend in the previous week on the strengthening of expectations for greater institutional investments. However, some of these gains were returned with regulatory nervousness, probably when the SEC announced the end of its public comment period for ETF applications on bticoin, which meant that a decision would soon be made.
It did not help that the FOMC announcement inspired more dollar strength and risk aversion on expectations of a December hike or higher funding costs. This has probably held back investors' demand for higher-yielding assets such as stocks and cryptocurrencies.
Traders continue to resist for further market catalysts, with reports suggesting that huge volumes of Bitcoin holdings are transferred from exchanges to portfolios perhaps as precautionary measures in the last week. Some say this may have been spurred by the US government's crackdown on EtherDelta, which the SEC has filed charges against its founder for operating a decentralized exchange without a license.
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