BTC – Ascending channel Bitcoin price breakout possible despite OKEx scandal Bitcoin price tag shed the bullish electricity which procured the purchase price to $11.7K earlier this week but the current stove may provide opportunities to swing traders.
Earlier this week Bitcoin (BTC) price tag moved into a bullish breakout to $11,725 adopting the earlier week’s news that Square purchased $4,709 BTC but since that time the price has slumped back into a sideways range.
A number of rejections close to $11,500 and the latest news of OKEx halting a number of withdrawals as its CEO’ cooperates’ with an investigation being carried out by Chinese authorities is also weighing on investor sentiment and Bitcoin price.
The trend of bad news has pulled the vast majority of altcoin charges back into the red and extinguished the recently found bullish momentum Bitcoin displayed.
The day time frame blinkers that giving up $11,200 could widen the door for the cost to retest $11,100, a level and that resides in a VPVR gap and would most likely give way to an additional fall to $10,900.
According to Cointelegraph Micheal van de Poppe, there is:
“Significant support at $11,000 is now a must-hold level of fitness to resume the bullish momentum, which may observe issues clearing current levels as renewed coronavirus lockdowns are spooking investors.”
Van de Poppe suggests that in case Bitcoin manages to lose the $11K support there is the possibility of the price falling below $10K to the 200 MA at $9,750 which is close to a CME gap.
Although the current price action is actually disappointing to bulls that desire to view a retest of $12K, taking a bird ‘s eye view reveals that there are actually many issues playing out in Bitcoin’s favor.
The latest BTC allocations by MicroStrategy, Square and Stone Ridge are actually positive, especially considering the current economic uncertainties that exist as a direct result of the COVID-19 pandemic.
Furthermore, volumes are surging once again from multiple BTC futures switches and on Friday Cointelegraph discovered that Bakkt Bitcoin exchange gotten to the latest record high for BTC delivery.
Bitcoin in addition has largely ignored the majority of the adverse information over the past 2 weeks and contained above the $10K level as buyers show consistent interest in getting it close to this level.
Help retests are expected
It’s also well worth noting that only aproximatelly 1.5 months have passed since Bitcoin exited a 24 day long compression phase that was implemented by pretty much the most recent breakout to $11,750.
Since the bullish breakout occurred the retail price has retested the $11,200 degree as support but a greater pullback to the 20-MA to test $11K as guidance would not be out of the ordinary. Even a fall to the $10,650 amount near the 100-MA would just be a retest of the descending trendline from the 2020 very high from $12,467.
For the short-term, it seems likely that Bitcoin price will trade in the $11,400-1dolar1 9,700 area, a cooktop which may turn out to become a swing trader’s paradise.