Coingape - 5/20/2020 6:02:28 AM - GMT (+0 )
Bitcoin [BTC] price action continues to indicate indecision among traders with side-ways chopping action. The bulls seems to be getting rejected horizontal resistance levels around $9850 – $10,000. Nevertheless, the market structure in the shorter time-frames project bullish sentiments with higher lows.
On the four hour chart, the price is forming the bullish cup and handle chart with targets around yearly highs at $10,500. Derivatives trader and chart analyst, Tyler D. Coates, took a twitter poll to judge the sentiments.
Will this bull flag / cup and handle / ascending triangle be enough to breakthrough $10,000? $BTC
With around 300 responses, the poll results are indecisive with equivalent bull and bear responses. Moreover, Mati Greenspan, financial analyst and founder of Quantum Economics also pointed out at the ascending triangle looking for a break-out. The targets of the bullish pattern is at $11,375.BTC/USD 4-Hour Chart Ascending Pattern (Source: Twitter) Long-Term Resistance
Nevertheless, on higher time-frames, the price continues to face resistance from the bearish trend-line following the 2017 All-Time High in prices. Crypto trader, Josh Rager, tweeted,
$BTC daily trendline from 2017 still in play on logarithmic line chart Gotta close it out above $10k bulls
Veteran trader, Peter Brandt, highlights the trend-line along with the local tops around $13,800 and $10,500 in the previous bull runs. A break-out above these levels could be significantly bullish for the price.
12 months ago bitcoin broke out of its accumulation phase, and re-accumulation started. A break out of this band will likely ignite another parabolic rally.
Nevertheless, if the bulls fail to break above the current levels, the price could likely revisit support the $4,000-$4,500 range. Currently, $10,000 is forming a strong psychological and technical barrier to the bulls. As the uncertainty stays put, short-term volatility will look to drive out over-leveraged positions on either side, short or long.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com