Ken Chigbo
Independent Analyst
- BTC/USD two-day run slowed down by the major descending trend line.
- A decent breakout in either direction looks imminent, given the recent consolidation.
The Bitcoin price is suffering with losses of 5% during trading on Wednesday, after failing to break through a major descending trend line that is limiting upside momentum. Bitcoin is currently on a two-day run of gains, but likely to be stopped in its streak, if it cannot break through the previously mentioned resistance line.
Since the extreme lows printed on the 6th February, which saw the price just breaching below $6000, Bitcoin has been gradually grinding higher. The recovery from those levels are being supported by an ascending trend line.
BTC/USD is trading in proximity to its 50 DMA, $10,500. Regardless of direction, a breakout is imminent, as the two trend lines meet. A push through the resistance trend line currently tracking around $10,700, also in proximity to the 61.8% Fibonacci, could see some chunky upside, back towards $12,000 where the 100 DMA is currently trading. Should the bears regain control, the 6th February lows around $6000 could easily potentially be retested.
BTC/USD daily chart
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