How Long Can Bitcoin’s Upward Move Continue?

Yesterday, the Bitcoin price began an upward move and broke out above the current resistance level. Furthermore, the price moved above its 200-hour moving average (MA).

Bitcoin Falling Wedge

This is where the bullish signs end, however. The price was rejected by the $9,250 resistance area and created a long upper-wick. This area previously acted as resistance and is found between the 0.5-0.618 Fibonacci levels of the previous decrease. Finally, there is both a regular and a hidden bearish divergence developing, making it likely that the price will decrease as a result.

In the short-term, the price is still trading above a minor support level at $9,155. However, fitting with the divergence we saw in the previous section, there was also decreasing volume during the upward move, especially that which caused a high of $9,280 to be reached. This is a bearish sign that suggests that the price will head lower, possibly towards the $8,700 area, which was the catalyst for the initial breakout.

Long-Term Movement

The weekly chart can be helpful in determining the future trend. While the price initially broke out from a long-term descending line that had been in place since the December 2017 high, it has fallen right back below it, creating a bearish candlestick. The current week’s close will be extremely important in determining the direction of the future trend. A close below $8,700 would indicate that the price is heading lower, possibly towards $6,500. On the other hand, a close above $9,600 would be bullish, confirming that the price has broken out from a long-term resistance line and likely cause it to move towards $13,000. At the time of writing, the bearish option seems more likely.

For those interested in BeInCrypto’s previous Bitcoin analysis, click here.