- Bitcoin's repeated defense against the average 200-day support indicates an end of the $ 10,350 decline and the possibility of a rebound of $ 9,601 for the 100-day average.
- A UTC close above this level and a further increase above USD 10,000 can not be ruled out as the recent USD 10,350 decline was lacking.
- Accepting below the hourly support of $ 8,977 in the chart, would weaken the record of a rebound in the next 24 hours.
Bitcoin looks set for a price rebound at $ 9,600, after repeatedly defending long-term support over the past 72 hours.
The best cryptocurrency by market value started the week on a negative note losing 3.56% Monday. Notably, BTC formed a candle with a long shadow up that day, signaling the exhaustion of the buyer and opening the doors to a deeper drop from the old support become resistance of 8 $ 820.
Until now, however, the decline has been limited around the 200-day moving average, a barometer largely followed by the long-term market trend.
Cryptocurrency fell to $ 8,985 on Thursday, below the 200-day MA, but quickly recovered. On the same model, Tuesday's low under the key average was shallow and short-lived.
Similarly, BTC almost tested the MA at 9,046 USD during the Asian trading hours before returning to highs close to 9,200 USD.
The repeated defense of major support indicates that the withdrawal of the small volume of the summit of $ 10,350 reached last Friday has probably ended and the risks are skewed upwards.
At the time of writing these lines, BTC is changing hands at $ 9,120 on Bitstamp, representing a 0.40% gain over 24 hours.
BTC defends the 200-day MA for the third consecutive day.
The cryptocurrency has formed a Thursday doji candle, which occurs when the market is witnessing a two-way affair and a flat end of the day (UTC). Usually, this candlestick pattern is considered a sign of indecision on the market.
The latest trend, however, came after a USD 1 350 withdrawal of USD 1000 and represents indecision or sell-out near 200-day MA support.
As a result, a rebound, probably in the range of 100 days to $ 9,601, could be expected in the next 24 hours or so.
It should be noted that trading volumes have fallen, with prices rising from $ 10,350 to $ 9,000. As a low volume withdrawal is often reversed, a rally of up to $ 10,350 could be considered.
Bitcoin has also failed three times in the last six days to close over the 100-day MA. As a result, if bulls are able to achieve an above average UTC close, this will likely result in greater buying pressure and lead to a move greater than $ 10,350.
3 day chart
Bitcoin jumped 28% in three days until October 27th, reinforcing the bullish vision put forward by the movement of 100 MA candles above the 200-candle MA confirmed in mid-October.
In addition, the strong increase was also supported by the highest trading volume since February 2018. The path of least resistance, therefore, is on the higher side.
Arguments for an increase to $ 9,600 in the next 24 hours would weaken if the horizontal support line of $ 8,977 shown in the above chart were hit by large volumes.
This would expose the planned support to $ 8,820 (October 11th high). A violation would be costly to the extent that the next major support is provided for $ 8,400.
Disclosure: The author does not hold any cryptocurrency assets at the time of writing.
Bitcoin image via Shutterstock; charts by Trading View