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Roshni Aslam
Nov 28, 2019
by Roshni Aslam

Bitcoin this week: Are we seeing lows of $6000 or revisiting $8000 next?

Bitcoin
 

Bitcoin was facing strong rejection at the $7350 resistance zone. Below you can see the number of times BTC was trying to break above the given line.

We can see an inverse head and shoulders pattern which is usually known to be a bullish indicator, only if the price breaks above the neckline. (An inverse Head and Shoulder pattern is invalidated when price fails to break above the neckline)
 

 

Did price break above the neckline? Yes! Bitcoin went straight up from a resistance of $7259 to $7600.

Not sure whether we could certainly deem that the BTC/USD pair will now flip from bearish to bullish. It still has to break above many key resistance zones. But from this level, there is a chance we could see $7800 target being met (second arrow). If and once we reach there, there is a possibility we could see a sell-off from that zone resulting in a very bearish reversal to $6700-$6200 levels. If the bulls are back in play, for certain we can see $8000 being met. For now, we need to closely monitor the breakthrough of support-resistance set ups to get into profitable positions.

 

WEEKLY:

Bitcoin on the weekly chart does not look very unfavorable. The weekly setup looks decent but only if it breaks higher from here next week. For now, it has bounced from $6727.7 to current levels but the week has not closed yet. Until then there is a possibility the bears can push the price down to a minimum of around $6700 levels and if that does happen, it could be grieving for Bitcoin. However, if we do see the close above $7800-$7850, we could be revisiting $8000s and can expect another green candle incoming next week. (log chart used below)

 

With this in mind, it is still important to stay cautious for spontaneous price movements. One of the beauties of trading is its volatility (whilst being in a sure confident trade) however it is vital to minimize losses and take profit along the way.

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Bitcoin this week: Are we seeing lows of $6000 or revisiting $8000 next?
Roshni Aslam
Roshni is a Bitcoin and Blockchain maximalist. With her hailing from a Msc Finance and Research background, she recently developed a passion towards writing. Constant learning gives her a great amount of gratification. She also works as an Investment Analyst at Alphabit Fund.

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