The Long-Term Bitcoin Cycle | Why I Don’t Focus On The Short-Term

Contents

Bitcoin balances around long-term support
CONTENT

  • BTC has been trading inside a rising wedge since March 13.

  • Loss of the $ 6800 level will lead to acceleration of the bearish move.

  • The weekly chart shows a bearish pattern.

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Bitcoin rallies in a rising wedge after falling to lows on March 13. Growth accelerated on March 30, and since then, the cryptocurrency has strengthened without significant pullbacks.

However, on April 10, Bitcoin is trading more than 5% lower intraday, testing a minor support zone of $ 6,900.

Trader @damskotrades tweeted a bitcoin chart showing a long-term trading range of $ 6700- $ 7700.

If quotes lose their support line, the bearish move could accelerate. However, the yen may try to retest the resistance level first before heading towards support..

Bitcoin balances around long-term support

If

$ BTC pic.twitter.com/HX7TMVBckM

– CryptoAmsterdam (@damskotrades) April 10, 2020

Rising wedge

BTC is still trading within the rising wedge pattern.

Bitcoin balances around long-term support

The price has remained within this pattern since it bottomed out on March 13th. It is currently trading directly in the area of ​​the support line, so it is not yet clear whether it is a perfect bearish breakout or not yet, despite the fact that the coin is forming a bearish engulfing candlestick pattern..

Until this happens, there is still a possibility of a rise in the direction of the resistance line, which was mentioned in the tweet.

However, the loss of the rising support line and the $ 6,700 support level will lead to an acceleration of the fall towards the $ 5,800 mark due to the absence of significant support levels on the way to this area.

Even if quotes rise to the $ 7,700 area, a bearish breakout is likely in the end.

Bitcoin balances around long-term support

In most cases, a rising wedge is considered a bearish pattern that forms resistance on the way up..

Long term forecast

On the weekly chart, the technical outlook does not look good either. Now the price is forming the fourth consecutive long upper wick, which indicates the presence of strong downward pressure.

In addition, Bitcoin failed to show a weekly close above the previous support level of $ 6,900, which turned into resistance.

The bearish outlook on the weekly and daily charts suggests Bitcoin is likely to fall towards the support indicated above.

Finally, this support coincides with the 200-week moving average where a trend reversal could occur..

So, BTC bounced off resistance and went down. After a possible attempt to test the $ 7700 level, the cryptocurrency will most likely break the current pattern and eventually head towards the $ 5800 mark.

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Bitcoin balances around long-term support

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