Bitcoin (BTC) Gaining Support – is it Reversal or Retracement?

The BTC/USD is consolidating in a descending triangle pattern which is supporting the market near $3,375 along with hurdle at $3,600. It's..

Arslan Butt•Wednesday, December 12, 2018•1 min read

Bitcoin is down more than 80% from its all-time high. It has plunged since the beginning of this year, dragging most major cryptocurrencies down with it. I still remember the lead crypto pair was approaching its all-time high near $20,000 during this time last year.

BTC/USD – Descending Triangle Pattern

BTC/USD is consolidating in a descending triangle pattern which is supporting the market near $3,375 along with a hurdle at $3,600. It’s a good opportunity to trade the choppy market by selling on the upper boundary and buying above the lower one.

You can see on the 4-hour chart that the BTC is still holding above the multi-days support level of $3,375. For now, Bitcoin has tested this level for the third time, which makes it a triple bottom pattern.

The 50- periods EMA is working quite efficiently as the market failed to cross above it even after testing it multiple times. At the moment, the same EMA is providing resistance at $3600.

BTC/USD – Key Technical Levels
Support Resistance
3337.76 3521.83
3255.08 3623.22
3071.01 3807.29
Key Trading Level: 3439.15

BTC/USD – Trade Idea
Crypto junkies are suggested to keep a close eye on $3,375 as below this, BTC/USD can drop to $3,000. Whereas, BTC/USD can go after $3,700 if it manages to stay above $3,385.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.