Just as Bitcoin (BTC) appeared ready to break through a crucial support zone around $6400, the bulls showed up to rescue the market leader and put in yet another higher low.
At approximately 9 pm EST, the Bitcoin bulls showed up to inject some life into the largely-stagnant cryptocurrency, preventing it from sustaining further losses and heading down to test major support levels near $6000.
At the time of this writing, Bitcoin is trading near $6600 and looks poised to test short-term resistance near $6800.
Four-Hour Chart
An engulfing candle has shown up on the four-hour chart of Bitcoin (BTC), suggesting that the first and foremost cryptocurrency is in for a rally after a short-term downtrend concluded with yet another higher low.
The appearance of this engulfing is undoubtedly bullish going into Thursday.
In the short term, Bitcoin looks poised to test its double top around $6800. If we want to be truly optimistic, the market leader may test the long-term downtrend line while it’s at it. A break of such line would be super bullish, potentially sparking a wave of ‘panic buying’ from investors waiting on the sideline to see which way BTC will go.
Trading Volume
Bitcoin’s bullish move back to $6600 has been supported by a nice spike in volume.
Around 3 am CET on the dot (9 pm EST), the market leader witnessed a visible spike in trading volume.
Trading volume has since tapered off somewhat, so it will be worth noting how traders react from here.
Daily Chart: Triple Top?
Taking a look at the big picture, Bitcoin is still very much in a precarious position with trend lines closing in.
The first and foremost cryptocurrency continues to coil and wedge between the long-term downtrend / strong resistance line and a shorter-term uptrend support line. Most interestingly, it is running out of space and will likely need to make a decision as to which way it will break out.
Bitcoin could, in theory, drift sideways through the triangle — which would prolong the ‘boring market’ significantly as we round out 2018. It would, however, put an end to the bear market.
What do you think of Bitcoin’s bullish price action and our bitcoin price analysis? Will the market leader break its long-term downtrend or is BTC still in for a lower low in 2018? Let us know your thoughts in the comments below!
[Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile.]