Bitcoin Value is Caught Under Key Hurdle For Fourth Week


Bitcoin is having a tricky time scaling a key transferring common hurdle that has saved the bulls in test for 4 weeks straight.

The impediment that’s proving so arduous to beat is the 10-week exponential transferring common (EMA), which stalled a rally try from round $6,100 in mid-September.

Since then, BTC has notably failed to provide a weekly shut (Sunday’s shut as per UTC) above the EMA, establishing it as an important degree to beat for the bulls.

At press time, BTC is buying and selling at $6,580 on Bitfinex, having clocked a weekly excessive of $6,730 on Monday. The 10-week EMA, in the meantime, is flatlined at $6,698.

The retreat within the final three days signifies that BTC has failed but once more to leap the EMA hurdle, weakening the chances of additional positive factors towards $7,000.

Weekly chart

As seen within the chart above, the 10-week EMA has been firmly capping bitcoin costs for a month.

On Monday, BTC crossed the trendline sloping downwards from July highs, confirming a bullish breakout. Whereas one would have anticipated the value to now be nicely above the 10-day EMA hurdle, the EMA hurdle is, actually, nonetheless intact.

The rejection on the 10-week EMA regardless of the upside break on Monday could now embolden the bears.

View

  • BTC’s failure to maintain positive factors above the 10-week EMA regardless of the trendline breakout has boosted the chances of a drop to $6,424 (final week’s doji candle low).
  • A violation there would open up draw back towards the psychological resistance of $6,000.
  • A convincing break above the 10-week EMA of $6,698 would sign a continuation of the rally from the September low of $6,100 and would open up upside towards September highs above $7,400.

Disclosure: The writer holds no cryptocurrency belongings on the time of writing.

Bitcoin picture through Shutterstock; Charts by Trading View 

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