Bitcoin's price is consolidating in a narrow range at press time and could regain bullish momentum above $8,350, technical charts indicate.
The leading cryptocurrency moved back above $8,000 on Friday as expected and was seen rising to recent highs above $8,500 over the weekend.
Despite the bull breakout, the price consolidation has neutralized the immediate bullish outlook, yet it is still too early to call a bearish reversal.
The bullish move failed to materialize and the cryptocurrency ended up creating a sideways channel over the weekend, as seen in the above chart.
An upside break of the sideways channel now would validate the descending broadening channel breakout and allow a rally to 200-day moving average of $8,468.
On the other hand, a move back into the descending broadening channel could prove costly.
The relative strength index is no longer reporting overbought conditions, meaning there is room for a rally to recent highs above $8,500 on the upside break of the sideways channel seen in the 4-hour chart.
View Bitcoin's price consolidation, when viewed against the backdrop of the descending channel breakout, indicates bullish exhaustion.
A break above $8,340 would allow a re-test of $8,468 and $8,507.
On the downside, a fall back into the descending broadening channel would shift risk in favor of a deeper price pullback to the 100-candle MA in the 4-hour chart, currently located at $7,496.
Bitcoin's Price Needs Move Above $8,350 to Regain Bull Bias
gepubliceerd op Jul 30, 2018
by Coindesk | gepubliceerd op Coinage
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