Bitcoin Analysis for 2019-11-29 [Premium]

Bitcoin Price Highlights

• The Bitcoin price created a double top combined with bearish divergence.
• It retested the level of the breakout.
• There is resistance at $7700 and $8150.
• There is support at $7400.

Bitcoin Price Breakout

After the breakout, the Bitcoin price made two attempts at moving above $7700. Both attempts were unsuccessful and the price decreased following the second one. It created a bearish engulfing candlestick and began to decrease. It retested the level of the breakout near $7400 and began to increase. This is a common movement after breakouts. The double top was combined with a bearish divergence in both the RSI and the MACD. The trend-line of the divergence is still intact. As long as that remains the case, we would expect the Bitcoin price to fail to move above the resistance area — possibly making a triple top. A break of the trend-line could indicate a breakout above the resistance area. However, the three current bullish candles have been easily contained inside the body of the bearish engulfing candlestick prior.

Daily Time-Frame

Looking at the daily time-frame, we can see the selling pressure at the $7700 resistance area by the long upper wicks. However, that coincided with the 10-day moving average (MA), which the Bitcoin price is using as support. A price close above these wicks would likely take us to the second resistance area at $8150. To conclude, the Bitcoin price retested the breakout level and began to move upwards. It looks likely to break out and move towards the second resistance area at $8150. For our previous analysis, click here.

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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.