On Monday, Bitcoin bulls continued to push the price higher as the digital asset crossed above the $9,400 and $9,550 resistance levels to set a lower high slightly above $9,600.
Bitcoin closed the month trading outside of the descending channel and the price is steadily pushing higher towards the 20-week moving average which currently resides at $9,800.
The Bollinger Bands indicator shows that above the 20-WMA, Bitcoin price could extend to $11,890, whereas a strong downside break could push prices as low as $7,768.
Both the weekly and daily time frames show Bitcoin notching successive higher lows and the price is well supported by the 200-daily moving average.
Bitcoin needs to gain above $9,575 or bears could set up shop and press the price to the 20-DMA and 200-DMA which are aligned at $8,722.
Traders will also note that on the daily timeframe the upper arm of the Bollinger Band indicator is at $10,106, so momentum traders who opened positions at $9,000 could begin to take a percentage of profits at $10,110, then adjust trailing stops in case a high volume breakout or short squeeze pushes Bitcoin price back toward $10,500.
The price has pulled back from the upper band and has now dropped to support at the 20-MA around $9,247 as the price range tightens.
Bitcoin price bounced off this point on Oct. 31 and on Oct. 26 and drops to $9,000 have been well defended by bulls.
If Bitcoin fails to gain above $9,500 to $9,600 momentum traders might consider going short from $9,450 and taking profits near $9,000 before flipping sides to open a position around $9,000 if the price takes this path.
Short-term price action aside, Bitcoin's setups on the monthly, weekly and daily time frame are exciting with a clear bull flag in sight.
Bitcoin Price Posts Strong Weekly, Monthly Closes
gepubliceerd op Nov 5, 2019
by Cointele | gepubliceerd op Coinage
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