4-hour bear flag sign is preventing Bitcoin from reaching the new highs above $10,000 since June 26th when the number one cryptocurrency reached e $13,880 as we read in the altcoin news previously.
The resisting line was tested for the fourth time now and it seems like the breakout is preparing since the last one turned out to be a false one with a produced red candle on the daily and a wick above the line. This was a hard circumstance for bitcoin since it plunged $700 in a matter of minutes. Later, Bitcoin support on the 100-days moving the average line and this is not surmising since that line was supporting the line very well for the past three weeks. Since the cryptocurrency plunged, Bitcoin is now slowly recovering as seen on the 4-hour bear flag on the charts. This flag will play out in a case of a strong breakdown and very much likely will send Bitcoin back to the $10,000 level if not beyond.
Usually, this kind of formation tends to bring the number one cryptocurrency to the downside and there is always a chance that it will break above. Bitcoin is now aiming in the long-term descending trend-line one more time at $10,600. If a breakout happens, the next major boundary is still $10,800 and $11,000 which is a very tough resistance level with a lot of sellers. The breakout above the $11,200 could bring to more bullish moments for bitcoin in the bigger picture. From below, the first level of support is the 50-days moving average line which stands at around $10,430. Then come to the 100-days MA currently at $10,250 along with the weekly low at $10,200 so now the next support is forming at around $9,800.
After encountering a strong resistance around 54-55, the RSI index is reaching the same position again. In the meantime, the stochastic RSI makes the cross-over at the oversold territory which spiked the $700 plunge two days ago as reported in the latest cryptocurrency news. Despite the price action from the past days, the volume is not so far from the average level. What will happen with the price of the number one cryptocurrency in the next few days, wait and check our website for updates.
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