- Falling wedge pattern formation increases the chances of recovery after the current BTC price consolidation.
- Bitcoin requires a push above $3,500 for it to record significant gains.
Bitcoin lull is resembling the price action in October 2017. The Spread between the BTC highest and lowest price dropped to $33 on Monday 4. This was the lowest level since October 31 as per the data on CoinMarketCap. Since then the daily range had been $32. At the time Bitcoin was trading at $6,300. However, the long-term predicted bullish reversal failed to materialize as Bitcoin dived below $6,000.
The current sideways trend has lasted for a week now where Bitcoin is changing hands below $3,500. The stability comes after a steady selloff from the highs around $4,200. According to the daily chart, BTC/USD has formed a falling wedge pattern, therefore, increasing the chances of a bullish breakout.
According to the confluence Detector tool provided by FXStreet, Bitcoin price is strongly supported $3,402.78. The area is highlighted by the 23.6% Fibonacci retracement level on the one-week timeframe chart. In addition to, the 4-hour lower Bollinger Band and the previous day low. In the short-term BTC/USD is bullish but if a reversal were to happen with the price plunging below $3,400, the bulls will seek refuge at 3,367.21.
While the chances of an upside movement are limited, a correction above the current market value ($3,421.8) will come face to face with the high seller concentration at $3,438.36 as observed using the 61.8% Fib level (daily range), the hourly 100 Simple Moving Average (SMA) and the Bollinger Band 1-hour upper.
Bitcoin requires a push above $3,500 for it to record significant gains. The Securities and Exchange Commission (SEC) is currently monitoring the crypto market for risks and price manipulation practices. Until the authority satisfied that the market is ready for a Bitcoin Exchange-Traded Fund (ETF), Bitcoin bear trend could last longer. A BTC ETF is likely to see institutional clients have more confidence in the market. The funds from these investors could culminate in the market reversing the trend upwards through the coming months of 2019.
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