Bitcoin is currently consolidating just below a clear descending trendline, showing a series of lower highs since its recent local top near $112,000. Price is hovering around $106,300, holding just above key horizontal support at ~$105,800. This level coincides with the 50-day moving average (blue), which is currently acting as dynamic support.
So far, Bitcoin has respected the ~$100,700 level as major support after the mid-June shakeout. As long as price remains above that zone and holds the 50 MA, the bullish structure remains intact despite the short-term lower highs. But the more price compresses beneath the descending resistance, the more likely we see a breakout (or breakdown) soon.
The 200-day moving average (red) is well below current price action, hovering near $95,000. That’s a long way down and would likely only be tested if broader market conditions deteriorate significantly.
Volume is tapering, suggesting traders are waiting for a decisive move. A break above the descending trendline and reclaim of $110,000+ would invalidate the current short-term downtrend and likely bring $112,000 and new highs into view. A loss of $105,800, on the other hand, puts $100,700 back in play – and below that, things could get ugly quickly.
For now, the trend is neutral within a broader uptrend. The bulls are holding the line – but just barely
So far, Bitcoin has respected the ~$100,700 level as major support after the mid-June shakeout. As long as price remains above that zone and holds the 50 MA, the bullish structure remains intact despite the short-term lower highs. But the more price compresses beneath the descending resistance, the more likely we see a breakout (or breakdown) soon.
The 200-day moving average (red) is well below current price action, hovering near $95,000. That’s a long way down and would likely only be tested if broader market conditions deteriorate significantly.
Volume is tapering, suggesting traders are waiting for a decisive move. A break above the descending trendline and reclaim of $110,000+ would invalidate the current short-term downtrend and likely bring $112,000 and new highs into view. A loss of $105,800, on the other hand, puts $100,700 back in play – and below that, things could get ugly quickly.
For now, the trend is neutral within a broader uptrend. The bulls are holding the line – but just barely
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.