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Subscribe to the Chepicap YouTube Channel for more interviews, news updates and price analyses! It's no major secret that Bitcoin has had a rough week or so. It appears the price has gotten stuck in a descending wedge and is testing down towards major support levels. Will the channel give first, or the support? Let's take a closer look.
Highlights:
- Bitcoin has been stuck in a descending channel for about a week now.
- Recently we hit a patch of support between $9,200 and $9,000.
- Now Bitcoin is trying to get back above $10,000.
- If we can get out of this descending channel, we can likely get back above $10,000 and test on $10,400.
- If not, it may carry us back down to test on $9,200 again, with another patch of support at about $8,800.
Looking at Bitcoin on the 4-hour timeframe, we can see the channel that the price has been carving out all week. We have repeatedly tested the top and bottom of this channel, and we recently got stopped on the lower end when we hit resistance in the $9,200 - $9,000 range. Now we are testing back up to the top of the channel, but seem so far unable to break back above $10,000. If we can get through, we would find more resistance at the $10,400 level. There is also a chance that sideways action could push us out of this channel in the coming hours, which may give more upward momentum to push above $10,000.
BTC/USD Chart provided by Tradingview
Zooming out to the daily, we can see how we are holding above a trendline that has defined Bitcoin since April. Holding above this trend would definitely see Bitcoin back above $10,000 before too long. If it should break, we can see how there is additional support beneath us from $8,800-$8,400. If we break below $9,000 testing these levels is likely.
BTC/USD Chart provided by Tradingview
A quick glance at Ethereum and Litecoin on the daily show how they were forming similar trendlines as Bitcoin, but have recently broken below. Could this bode ill for Bitcoin and the market, or is it just indicative that Altcoins aren't performing as well?
LTC/USD Chart provided by Tradingview
ETH/USD Chart provided by Tradingview
Bitcoin dominance is still holding strong, and a of now is at 65.4%, showing us that we still aren't seeing an Altcoin rally just yet.
Could this turn around soon and give Altcoins the rally they've been waiting for? Or will Bitcoin be seeing more upside first? Stick with Chepicap for all updates on crypto price action!