Bitcoin Breaks 5-Day Long Trend Reaching $9,800 Support Level
Bitcoin breaks 5-day long trend and it reached to the key support level of $9,800 and since then bullish divergence appears to have formed on the low time-frames and could spur a huge reversal in the next few days as we can read in the latest cryptocurrency news today.
On the one hour charts, the XBT/USD pair seems to have formed an ascending wedge that is ongoing throughout the entire August. This wedge has broken two days ago and has since dropped to the key support level at $9,800 as mentioned in the previous analysis. Since it re-tested the key support level, the price action has begun to bounce and form a short-term reversal. The MACD can be seen rising at the same point in which Bitcoin created two lows around the $9,800 which could indicate a bullish divergence forming around this price point. The Point of Control can be seen acting as a support around $10,100 which as price action test level multiple times within the last 24 hours. The market price is seeing some small pump as the candlesticks form and touch the 200 EMA. This could also mean that there is another ascending channel will form over the coming days that take bitcoin back to retest the $11,100 which was previously rejected. The 500 MA sitting in the $10,900 will be a massive resistance point that Bitcoin will need to cross in order to sustain a breakout.
Now, as seen Bitcoin breaks 5-day long trend and we can see that the breakout zone is highlighted and if the price action can rave up enough volume, the bulls clearly will re-gain control of the market once the breakout zone has been entered around $11,300 and we could expect further upside so once this happens, the price levels can be seen below the breakout zone and Bitcoin can manage to surpass both of these highs and proceed to create a higher high.
It seems as Bitcoin has created a huge consolidation range from around $9,100 to $14,000 over the last couple of months and once a break to the upside takes place the consolidation will essentially act as a fuel for another volatile move to the upside as per the analysis in the coming altcoin news reports.
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