- The cross between the 100- and 200-day moving averages (MA) will determine the direction of the trend.
- Currently, the MAs have made a bullish cross.
- There is support at $8000 and $8130.
- Bitcoin is following a short-term ascending support line.
Bitcoin Daily AnalysisThe Bitcoin price is trading inside a descending wedge. The short-term 10- and 20-day MAs are in line with each other, so every short-term price movement causes a bearish or bullish cross. On the contrary, the 100- and 200-day MAs hold more importance. At the current time, they are both above the price and close to making a bearish cross. These two MAs have been instrumental in determining the direction of the trend. The bearish cross in April 2018 confirmed that we were in a downtrend — which lasted until April of the next year. In my opinion, we will not make a bearish cross. It is much more likely that we have a rejection of the cross which is succeeded by upward movement, similar to what we had in May and December 2016.
Short-Term MovementLooking at the short-term, we can see several things. First, the price is following an ascending support line and has been doing so since September 30. The line is currently slightly above $8000. Also, there is one support area at $8130, which previously acted as a resistance. The closest resistance area is currently at $8400. Currently, we are expecting the price to drop to the support area before resuming its upward movement. A breakdown below the short-term support line would likely take us to the support line of the descending wedge. Good luck and happy trading! For yesterday’s analysis click here.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.