- Bitcoin’s long-term bullish bias remains intact, with prices holding well above the historically strong support of the three-day chart’s 55-candle exponential moving average (EMA), currently at $8,972. The line served as a strong base in the 2016–2017 bull market.
- A bullish falling-wedge breakout on the 4-hour chart looks likely and could pave the way for a retest of recent highs above $10,900.
- The prospects of a breakout would weaken if prices find acceptance below Wednesday’s low of $9,855 on the back of a rise in selling volumes. That would expose support at $9,320 (Aug. 29 low).
Bitcoin’s (BTC) price rally has stalled in the last 10 weeks, but the bullish case remains intact with prices hovering well above a historically strong price support.
The leading cryptocurrency broke into the latest bull market on April 2 with a high-volume rise from $4,000 to $5,000. It subsequently went on to hit a 17-month high of $13,880 on Bitstamp on June 26.
Since then, however, the cryptocurrency has charted a narrowing price range with lower highs above $12,000 and higher lows below $10,000, as seen in the chart below.
The consolidation is reminiscent of a contracting triangle near $6,000 seen in the August to October period last year. That narrowing price range had ended with a downside break in November.
The latest consolidation, therefore, may force investors to question the validity of the bullish breakout confirmed in April.
However, it is too early to call an end of the bull market and the risks will remain skewed to the upside as long as the cryptocurrency is defending the three-day chart’s 55-candle exponential moving average.