Coingape - 10/8/2019 6:51:30 AM - GMT (+0 )
- Bitcoin broke out of the descending channel resistance extending the bullish action above $8,300.
- The current short-term retreat will find support at $8,200, $8,000 and $7,800.
Bitcoin is displaying a bearish picture in the short-term while the long-term timeframe remains strongly bullish. The price on the hourly chart is trading above the moving averages. The 50 MA is inching closer towards the longer-term 100 MA. A double-cross above the long-term moving average is likely to double-down Bitcoin price potential to hit highs above $8,600 and $9,000 respectively.
As predicted on Monday, Bitcoin break above the descending resistance gave the price a brilliant boost above $8,000. The successive bullish candlesticks explored the levels above $8,300 but left $8,400 hurdle untested.
At the time of press, XBT/USD is teetering at $8,228 following an ongoing from the weekly high achieved at $8,333. Immediate support is observed at $8,200 while both the 100 MA and the 50 MA will come in handy to cushion losses if the event the reversal extends towards $8,000.
The relative strength index in the same hourly range suggests that the bears are gaining traction in the short-term. The indicator reacted to yesterday’s recovery by hitting levels around 75. However, the current gradual retreat means that the bears have an intent to force action towards $8,000.
Consequently, according to Faibik, a pro analyst on Tradingview the bullish action is far from over. According to the analyst, the daily timeframe has remained bullish with the moving average convergence divergence showing a weakening bearish front and a stronger bullish camp.XBT key Technical Levels
Spot rate: $8,241
Relative change: 29
Support: $8,000 and $7,800
Resistance: $8,400, $8,600 and $9,000.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige