Sign Emerges That Falling Bitcoin Price Just Might Have a Floor

Throughout 2018, the leading cryptocurrency has set lower price highs, indicating the path of least resistance is to the downside.

Despite the bearish setup, the 21-month exponential moving average has served as a strong floor since June.

The failure to beat the EMA support for four straight months indicates that the sell-off from the record high of $20,000 reached in December has likely run its course.

It seems safe to say that the stage has been set for the cryptocurrency to jump above the recent lower price high of $7,429 hit a month ago and confirm a bearish-to-bullish trend change.

As seen on the monthly chart, BTC produced a minor rally to $8,500 in July, after finding support at the 21-month EMA in June.

Over on the daily chart, the 5-day and 10-day EMAs are flatlined, indicating that the bitcoin market is currently lacking a clear directional bias.

The outlook as per the daily chart would turn bullish if and when the cryptocurrency finds acceptance above the trendline connecting the July 25 high and Sept. 5 high.

A UTC close above the falling trendline seen in the daily chart would open up upside toward $7,429.

A high volume move above that level would add credence to BTC's repeated defense of the 21-month EMA and confirm a bearish-to-bullish trend change.

Bitcoin chart image via Shutterstock; Charts by Trading View.