Pullback Over? Bitcoin Bounces $600 from $11K Price Support

You have a red bag 币圈小学生 发了一个红包

Pullback Over? Bitcoin Bounces $600 from $11K Price Support

Omkar GodboleOmkar Godbole


 Jul 12, 2019 at 11:01 UTC

 Updated Jul 12, 2019 at 12:43 UTC

NEWS

View

  • Bitcoin’s bounce from the support of the 10-candle moving average (MA) on the three-day chart may have opened the doors for a retest of recent highs above $13,000. The MA has consistently reversed pullbacks since February.
  • A failure to hold above that support level ($11,167 currently) would validate the bearish candlestick pattern seen on the daily chart and allow a drop to support at $10,769.
  • A UTC close below $9,615 (July 2 low) would confirm a bearish reversal.

Bitcoin has bounced up from historically strong price support, raising the prospects of a renewed push toward recent highs above $13,000.

The cryptocurrency market leader had been on the defensive in the Asian trading hours today, looking set for a drop below $11,000 after a failure to capitalize on a falling wedge breakout seen yesterday.   

The move below $11,000, however, remained elusive with the cryptocurrency finding takers around the three-day chart 10-candle moving average (MA) support – then located at $11,150 – and rose to a high of $11,797 soon before the press time.

The $600 bounce from the 10-candle MA could be a sign the pullback from the weekly high of $13,200 has ended.

The 10-candle MA has consistently acted as strong support, reversing corrections throughout the rally from February lows near $3,500 to June highs near $13,800, according to Bitstamp data.

So, if history is a guide, BTC could rise all the way back to the July 10 high of $13,200 in the next few days.

As of writing, BTC is changing hands at $11,673 on Bitstamp, representing a 1.3 percent gain on a 24-hour basis. The 10-candle MA on the three-day chart is now located at $11,167.

3-day chart

This year, BTC first found acceptance above the 10-candle MA on Feb. 9 and the technical line has acted as strong support ever since.

For instance, the cryptocurrency traded in a sideways manner along the average line for almost a month before witnessing a 21 percent rise to levels above $5,000 in early April.

The 10-candle MA also fueled strong price gains in early May and June (marked by arrows). What’s more, the sell-off from the June 26 high of $13,880 ran out of steam near the key average on July 2 and prices rose back to $13,200.

All-in-all, there is a strong reason to believe that the latest bounce from the 10-candle MA will be extended further toward recent highs.

Daily chart

BTC closed below $11,550 yesterday, confirming buyer exhaustion signaled by the previous day’s bearish outside day candle. 

Even so, the cryptocurrency is better bid at press time, as mentioned above.

The focus would shift back to the bearish outside reversal if prices fall back below the 10-candle MA, currently at $11,167. In that case, the support at $10,769 (July 5 low) could come into play.

The outlook would turn bearish only if prices print a UTC close below $9,615 (July 2 low), invalidating the bullish higher lows pattern.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; charts by Trading View

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

  • 37
Block
Add Reply
Feedback |

https://www.coindesk.com/pullback-over-bitcoin-bounces-600-from-historically-strong-price-support

Add Reply
expand

thanks

Add Reply
expand

support

Add Reply
expand

nice

Add Reply
expand

keep on

Add Reply
expand

Support  Landlord   

Add Reply
expand

Thanks  your sharing

Add Reply
expand

great

Add Reply
expand

good day

Add Reply
expand

Support 

Add Reply
expand

mining

Add Reply
expand

Nice sharing       

Add Reply
expand

Support 

Add Reply
expand

support~       

Add Reply
expand

thanks for sharing.      

Add Reply
expand

Good afternoon.

Add Reply
expand

support

Add Reply
expand

Good afternoon

Add Reply
expand

Support you

Add Reply
expand

Support

Add Reply
expand

mining

Add Reply
expand

Comje and support

Add Reply
expand

great sharing

Add Reply
expand

support

Add Reply
expand

mine

Add Reply
expand

good

Add Reply
expand

thanks

Add Reply
expand

good afternoon

Add Reply
expand

mining

Add Reply
expand
You should login to reply
You will reward to {{ username }}

Available Balance: {{balance}}

≈ $ {{usdtAmount.toFixed(2)}} (The reward commission rate is 10.0%)

New Favorite Bag

Add To Favorite You can create multiple favorites and classify the topics. Please select the favorites you want to add.
{{ favoriteBag.title }} {{ favoriteBag.favorites_count }}Topics

{{ text }} OK
fa-bars fa-arrow-up