HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

TA: Bitcoin Consolidates Below $14K: Why 100 SMA Is Crucial For Next Move

Bitcoin 2020/11/02 04:48 by Aayush Jindal

Bitcoin price traded above the $14,000 resistance before correcting lower against the US Dollar. BTC is currently consolidating gains and it must stay above the 100 hourly SMA for a fresh increase.

  • Bitcoin started a downside correction after forming a high near the $14,080 level.
  • The price is trading above the $13,600 support and the 100 hourly simple moving average.
  • There is a major bullish trend line forming with support near $13,580 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair must stay above $13,550 and the100 hourly simple moving average to continue higher.

Bitcoin Price Holding Gains

This past week, there was a steady rise in bitcoin price above the $13,500 resistance. BTC broke the $13,800 resistance and settled well above the 100 hourly simple moving average.

The price even spiked above the $14,000 resistance before starting a downside correction. There was a break below the $13,800 support level. The price also traded below the 50% Fib retracement level of the upward move from the $13,430 swing low to $14,076 high.

However, the price remained well bid above the $13,600 and $13,500 support levels. There is also a major bullish trend line forming with support near $13,580 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The trend line is close to the 61.8% Fib retracement level of the upward move from the $13,430 swing low to $14,076 high. The 100 hourly simple moving average is also following the trend line at $13,850.

As long as bitcoin price is above the trend line support and the 100 hourly SMA, it could start a fresh increase. On the upside, an initial resistance is near the $13,800 level. The main resistance is near the $14,000 level. A successful close above the $14,000 resistance could open the doors for a sharp rally towards $14,400 or even $14,500.

Downside Break in BTC?

If bitcoin fails to stay above the $13,600 and $13,580 support levels, there is a risk of a downside break. The first key support below the 100 hourly SMA is near the $13,500 level.

A downside break below the $13,500 level is likely to spark a fresh increase in selling. In the stated case, the bears may perhaps attempt a test of the $13,000 support level in the coming days.

Technical indicators:

Hourly MACD – The MACD is slowly moving in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $13,580, followed by $13,500.

Major Resistance Levels – $13,800, $13,880 and $14,000.

0 Like(s)



You should also read...

Bitcoin 14/10/20 05:48 by Aayush Jindal
TA: Bitcoin Could Start A Major Correction If it Closes Below $11,200
Bitcoin price is still struggling to gain bullish momentum above $11,500 against the US Dollar. BTC could start a major downside correction if it breaks $11,200 and the 100 hourly SMA. Bitcoin is str...
Read More
Bitcoin 11/11/20 04:48 by Aayush Jindal
TA: Bitcoin Trades Near Crucial Juncture, Why 100 SMA Is The Key
Bitcoin price is facing a strong resistance near $15,500 and $15,600 against the US Dollar. BTC could clear the $15,500 resistance unless there is a clear break below the 100 hourly SMA. Bitcoin is f...
Read More
Bitcoin 12/11/20 04:48 by Aayush Jindal
TA: Bitcoin Prints Bullish Pattern, Why Break Above $16K Could Be Significant
Bitcoin price regained momentum and broke the $15,800 resistance against the US Dollar. BTC is trading nicely above the $15,500 support and the bulls seem to be aiming a break above $16,000. Bitcoin ...
Read More
Bitcoin 02/12/20 04:48 by Aayush Jindal
TA: Bitcoin Correcting Gains, Why 100 SMA Could Trigger A Larger Decline
Bitcoin price formed a new yearly high close to $20,000 before correcting lower against the US Dollar. BTC could accelerate its decline if there is a clear break below the 100 hourly SMA. Bitcoin is ...
Read More
Bitcoin 22/12/20 04:48 by Aayush Jindal
TA: Bitcoin Corrects, Why 100 SMA Could Trigger Another Leg Lower
Bitcoin price started a downside correction below the $23,000 support against the US Dollar. BTC is likely to decline again as long as it is below $23,500 and the 100 hourly SMA. Bitcoin started a fr...
Read More