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Markets Update: BTC Tests Major Descending Trendline

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The BTC markets are testing a key resistance area, with price demeanour appearing to be making a third point of contact with a major dropping trendline dating back to December 2017.

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BTC On Cusp of Testing Crucial Trendline

The BTC markets appear on the cusp of a significant move, with assay action testing a major descending trendline for the third time at the sternly $6,750 area. The trendline dates back to the all-time highs of not quite $20,000 USD, and makes an additional point of contact with late July’s local maxima of roughly $8,500.

Markets Update: BTC Tests Major Descending TrendlineBTC/USD – Bitfinex – 1D

Should the markets break above the trendline, the next memorable resistance areas are at approximately $7,500 and $8,500. Should the markets diminish to produce further bullish momentum, it is likely that the price of BTC order retrace to test a fourth point of contact with the long-term ascending trendline day back to March 2017 that completes the large symmetrical triangle in which BTC’s worth action appears to be consolidating. Should the symmetrical triangle fail to detain c last, many analysts predict the possibility of a major wash-out down to the $4,500 neighbourhood.

Short Squeeze Still Possible

Looking at the number of BTC short localizes on Bitfinex, one can identify a 9.8% retrace in selling pressure from at the rear week’s test of the all-time high area of nearly 40,000. Whilst it is calm possible that the markets will produce a short squeeze, tattle on pressure has held with far greater resilience than when it earliest tested the 40,000 area in April – which saw a 40% reduction in over persuading pressure within the same daily candle that also piled historic open short positions.

Markets Update: BTC Tests Major Descending TrendlineBTC/USD Shorts – Bitfinex – 1D

Looking at the stochastic RSI, the sells appear over-bought on the 1-day charts – with the stochastic RSI throttled on the 80 threshold, however, appear to be showing signs of strength after father being over-sold on the 3-day charts – with the stochastic RSI breaking beyond everything the 20 threshold for the first time since the end of June.

BCH Price Reaction behaviour Tightens

The BCH/USD markets have consolidated within an extremely tight fluctuate this past week. After setting a new low for 2018 of roughly $475 on the 14th of August, and rallying by multifarious than 15% on the 17th of August, the markets have since retraced and tightened in trade mark Aga – with prices currently hovering at approximately $525.

Markets Update: BTC Tests Major Descending TrendlineBCH/USD – Bitfinex – 1D

Looking at the BCH/BTC designs, BCH appears to be breaking into a new low for 2018 – with the markets currently deal for 0.07816.

Markets Update: BTC Tests Major Descending TrendlineBTC/BTC – Bitfinex – 1D

Do you think that the BTC markets will break above the trendline in the cut b stop term? Share your outlook on the markets in the comments section below!

Images politesse of Shutterstock, Trading View

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