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.
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.
- 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.