View Bitcoin's current trading range of $3,920-$4,055 could be breached to the downside, as last week's doji candle created at the key 21- week moving average resistance is signaling bullish exhaustion.
A downside break of the trading range, if confirmed, could yield a sell-off toward the support levels lined up at $3,775 and $3,658.
On the higher side, a UTC close above $4,055 is needed to put the bulls back into the driver's seat, although that looks unlikely at press time.
Chart signals of bullish exhaustion suggest bitcoin's narrowing trading range could soon be breached to the downside.
The price swing formed what's termed a doji candle on the weekly chart, which is usually taken to represent indecision in the marketplace.
As a result, the probability of BTC ending the ongoing consolidation with a convincing break below $3,920 appears high.
The case for the downside break of the $3,920-$4,055 trading range looks stronger if we take into account the price action seen over the last five weeks.
On the daily chart, the short-term MA studies are now biased toward the bears, with the 5-day MA having dropped below the 10-day MA. Further, with the price well below the March 21 high of $4,055, the bearish outside-reversal candle created on that day is still valid.
The sideways channel seen in the 4-hour chart could be breached to the downside in the next day or two.
Bitcoin image via Shutterstock; charts by Trading View.
Bitcoin Price Consolidation Continues, Downside Break Looks Likely
Publié le Mar 25, 2019
by Coindesk | Publié le Coinage
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