Having faced rejection above $9,400 multiple times on Wednesday, the top cryptocurrency by market value came under pressure during the Asian trading hours today. Buyers, however, absorbed the selling pressure at $9,188, keeping the former resistance-turned-support intact.
Bitcoin defended key price support early on Thursday, strengthening the case for another move higher.
Bitcoin had reversed lower from the same $9,188 hurdle on Jan. 14, aborting the short-term bullish view. So, as the cryptocurrency bounced up strongly from $8,250 earlier this week, traders wondered whether bitcoin will again fail at $9,188 and form a double-top bearish reversal pattern or cross the hurdle with conviction.
The latter case won the day and the bulls managed to push prices well above $9,188 on Wednesday, flipping the resistance into support and establishing a new higher high.
At press time, bitcoin is changing hands at $9,350, according to CoinDesk’s Bitcoin Price Index.
Bitcoin is moving in a sideways channel on the hourly chart. A move above channel resistance at $9,452 would likely accelerate the recent rally and open the doors to $9,600 (channel range added to breakout price). A violation there would expose the psychological resistance at $10,000.
The RSI is no longer reporting overbought conditions and is currently in bullish territory above 50.
With the longer duration charts also biased bullish, the odds appear stacked in favor of a range breakout. Should the range be breached to the downside, a deeper pullback to the 200-day average at $8,900 may be seen.
BItcoin rose past $9,188 on Wednesday with a positive “marubozu candle,” indicating that bullish sentiment is quite strong.
Further, the 5- and 10-day averages are trending north, so dips, if any, are likely to be short-lived.
A bearish reversal would be confirmed only if prices print a UTC close below $8,213 (higher low created on Jan. 24). Currently, that looks unlikely.
Bitcoin News Summary – November 25, 2019
People’s Bank of China warned it will take action against entities that may be involved in trading cryptocurrencies. The move was in response to a rise in trading activity following China’s public endorsement of blockchain technology. Pledging to keep its promise to outlaw trading, the PBoC vowed to “dispose of” any such activity it discovered under its jurisdiction.
Following the statement, attention focused on reports of alleged police raids on the offices of Binance and Bithumb in Shanghai. Both exchanges promptly denied the rumors. In a tweet response on Friday, Changpeng Zhao, the CEO of Binance, announced its intent to sue the news agency which released the story, and called the report ‘pure FUD’.
The Monetary Authority of Singapore, may soon allow cryptocurrency-based derivatives to be traded on regulated platforms. The proposal comes as a response to demand from international institutional investors for regulated products to be able to hedge their exposure in payment tokens.
The CEO of Paypal, Daniel Schulman, has revealed that he personally owns Bitcoin. In a recent interview, Schulman was asked numerous questions regarding his crypto holdings, where he admitted that he indeed holds Bitcoin.
And finally, cryptocurrency institutional investors overwhelmingly keep their wealth on exchanges despite the inherent security risks. According to a survey of 76 institutional investors, 92% of participants chose to keep their crypto with trusted third parties, and not under their own control.