Market Analysis

BTC value pokes the possibilities of breakout, bottom not found yet

BTC value pokes the possibilities of breakout, bottom not found yet
Dec 3, 2018 by Rico Wise

The trading rate of bitcoin-to-dollar accounts for 4,158 USD at the time of writing. The trading pair is not far away from finishing a creation of an inverse head-and-shoulder pattern. Its neckline seems more of a short-term falling trend line, completing the confident rally. The most recent spike in the trading pair has served as an affirmation of what the market bulls are trying to break now. Performing a breakout over the neckline level establishes a ground for 4,500 USD rally. The resistance level is hardly even psychological at this point, and if it becomes invalid, it might serve as the confirmation of an extended course in the direction of 5,000 USD.

Currently, cryptotraders are able to wait for Bitcoin-to-dollar trading pair’s closure over the neckline, hoping for validation in the event that breakout is valid or false. Such tactics might let cryptotraders go long on the way to their respective short- or long-term goals on the upside. Another scenario is that cryptotraders are able to secure a limit order at the level of, or right below the neckline, in order to obtain an execution of a BTC value bounce back.

Apart from the inverse head and shoulders formation, the tech dynamics of the BTC cryptomarket is generally bullish in the short-term. The Bitcoin-to-dollar trading pair is currently trading above the level of 50 SMA. The RSI momentum index is approaching the measurement of 60, expecting a surge in order to record validation of a more powerful bullish bias.

Meanwhile, the community tends to think that BTC has found its bottom. Despite the fact that the cryptomarket has definitely established a short-term support level at 3,430 USD, there are no confirmations for bottom discovery. For such confirmation to be had, a steady break and a period of consolidation above 4,500 USD must occur first.

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