BTC price is rising quite a lot, having cleared crucial resistance in the morning.
The most important cryptocurrency moved beyond $6,400 earlier today, and it indicated bearish exhaustion is leading up to a corrective rally. The positive price action happened after a good defense of the long run trendline connecting the June low and Aug. 11 low and an upside break of the symmetrical triangle.
Consequently, an upside move is would be no surprise but we shouldn’t forget that recently, caution has the most important role in the game because of the bearish moving averages (MAs) can act as obstacles and complicate the recovery.
BTC clocked a high of $6,490 earlier today and now is changing hands at $6,450, according to Bitfinex data.
The insistent bear failure to penetrate the lower end of the pennant pattern is yielding a bullish move at last, on the daily chart. A UTC close today above $6,400 would farther cement the short-term bullish case.
Even so, as of writing, sloping downwards (bearish) 10-day moving average, is slowing down the price rally.
The bullish price action on the hourly and daily chart signals that BTC could test the 10-week MA of $6,847 in a few days.
The bearish moving averages might gear down the pace of the bullish move, yet are improbable to derail the corrective move above. Furthermore, price action supersedes lagging indicators like the moving averages every time.
A downside break of the pennant pattern in the daily chart would spirit up the bearish view.