Bitcoin is heading back to $6200 after a bearish breakout today. Is BTCUSD heading to $6000 and even below?
October 2018 | AtoZMarkets - The Cryptos have gone sideways in the last two weeks after a big rally. Bitcoin is confined in two triangle patterns. A larger triangle pattern with a bearish breakout forecast at $4000 and bullish breakout forecast at $8000. A much smaller triangle range with a bullish breakout forecast of 6100-6200. Much of this was discussed in the last update. Triangle patterns often precede a big move more often than not, in the direction of the preceding trend. Today, price has broken below the smaller triangle pattern and now probably heading below $6200. Will price finally drop below $6000 to a make a new low far below $5900 year low?
Bitcoin Technical Analysis and Important Price Levels
The chart above shows the bigger 10 weeks triangle pattern which started late July after price dropped from 8500 to 5900 (the lowest this year). For about ten weeks the bullish and bearish momentum are at equilibrium. One thing is clear though - the rallies (bounces) took time to complete while the dips happened very fast. This probably shows the bears are still control and the bulls are only buying time. How long will the bulls hold price above $5900 support. Looking inside the 10-weeks triangle, there is a smaller triangle shown in blue. Look at how fast price dropped from 7400. Since that drop BTC has stayed within 6800 and 6000 range. A breakout below 5900 will eventually happen and the resultant dip might continue to 4000. Price showed a bit of that today with a fast dip to 6200. After the upsurge to 6800 mid-October, price has continued in another triangle range for almost 2 weeks. The chart below shows the recent 2-weeks triangle range.
Price has broken below the 2-weeks triangle pattern and quickly hit 6200 today. This might be the early sign of a big bearish breakout. Below 6200, there is 6000 and 5900 where the bulls would like to push again. Technically, Bitcoin is still bearish with potential target at 4000. Unless a fast bullish spike happens above 6500, the bulls might loose this time around.
Where do you think the breakout will happen? Please share with us in the comment box below.