Market Analysis

BTC value eliminates its weekend profits to engage in bearish long-term trend

BTC value eliminates its weekend profits to engage in bearish long-term trend
Dec 4, 2018 by Rico Wise

The bitcoin-to-dollar trading pair rate failed to perform a breakout above the neckline as it was earlier expected to. The falling trendlines display a lot of strength in other patterns, too. For example, the symmetrical triangular formation also represents its upper trendline on the hourly chart in a form of confident resistance to the latest bullish efforts. BTC is creating lower peaks and higher lows to perform a consolidation within the said triangle. Currently, the market is trying out the support area of the triangle pattern.

The trading pair rate is now making a bounce back from its newly established support level at 3,910 USD and is expected to repeatedly perform the trial of the triangle resistance. In the event that buyers stay quite strong, they would have the ability to set up a formation for the breakout, pushing the trading pair above the wall. Should that occur, the following goal of the upside movement is situated at 4,413 USD, which still remains within the fake breakout area, allowing to establish a good enough extended chance for bulls. At the same peak, the placement of a stop loss at 10 USD lower than the local swing low would serve as the definition of the risk management tactics.

In the meantime, as the trading pair of bitcoin-to-dollar continues trying out the triangle support, there is also a high possibility that a breakdown action will take place. A prolonged selling action may bring forward the 3,650 USD mark as the instant downside goal. Cryptotraders that seek short entrance in the direction of the mentioned bear level have to sustain a stop loss goal 10 USD over the local swing high, thus cutting the expenses in the event of the value’s reversal.

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