As we have seen in today’s crypto daily brief this is not a good day for cryptocurrencies. The top ten cryptocurrencies, besides Tether (for obvious reasons), are falling in a bearish trend that has been in place the last four days.
As far as Bitcoin, during the last couple of hours it seems there is a pause on the bearish action, so let’s take a look at what we can expect.
Five hours ago, we saw a sudden bounce of the BTCUSD, which at that moment was trading at about 9,750. That bounce led the price to reach $10,380 in less than 5 minutes. The movement stopped there and, eventually, went down again and crossed the 9,750 support. Then it jumped back above the $10,000 level where it continues to hold currently.
If we observe the 1H chart above, we see that the price seems to be moving in a triangle formation. This gives us the following information:
1.- The downward trend has paused.
2.- There is demand at around $9,800
The resolution of this triangle, which means doubt and struggle between bulls and bears, will decide if this correction, at about 62% of the last bullish leg, ends or there will be a second leg down to test the next support at $9,000.
The indicators shown in the chart are bullish. The Stochastics points to the upside and the MACD is in a bullish phase in the 1H Chart. Also, the CCI is creating a known bullish figure. These are good indications but are against the current downward trend, so we need a good price-action signal to confirm them, such as a good breakout candle to pierce this triangle to the upside.
It will be good news for the Bitcoin if the $10,000 holds at the end of this trading session.