Bitcoin (BTC) has had an eventful 24 hours, as far as price action is concerned, after a series of rocketing reversals down and back up.
The leading crypto had yesterday tepidly broken out of a weeklong consolidation between roughly $3,940 and $4,000. That small push above 4k came without much volume or power. What’s more, it entered the 2018 downtrend (linear chart) resistance line (the orange field below), which has a year worth of price history. The push looked precarious, and indeed it did not hold this level for more than half a day.
A sharp drop followed, breaking all the way through previous support and nearly to the next local supports, in the mid $3,800’s. In a somewhat heartening sign, this dump was quickly bought back up to the exactly same consolidation zone as last week. But BTC is now stuck under the 55 hour exponential moving average, whereas before it was trending above (see below, Kraken exchange).
(source: TradingView.com)
This sort of sharp fall, piercing support zones before being quickly bought back up, has been happening to Bitcoin with some frequency in the past weeks. We can count at least four instances in the last month of this movement. But in previous instances, the drop was usually bought up all the way back to where it began – where as in this case, Bitcoin price has so far failed to get back above $4,020.
(source: TradingView.com)
Price is still well within the local uptrend, first laid on about 17 February. A continued respect of this uptrend, however, will again bring BTC in contact with its 2018 (linear chart) downtrend line. We must entertain that this downtrend has strength, as it is exactly where Bitcoin was yesterday punched back down to previous support.
(source: TradingView.com)
If we zoom out to the weekly chart, we can clearly see the force of this downtrend line – breaking it will be no light matter.
(source: TradingView.com)
Ravencoin Price Discovery
On the altcoin front, Ravencoin (RVN) has proved to be one of the highest gainers of the last month. After breaking out of a falling wedge pattern in late February, Ravencoin gained over 200% (trading against Bitcoin, not USD) to retest its previous all-time-high. After pulling back from this level and reconsolidating at the 0.5 fibonacci level, Ravencoin yesterday entered “price discovery” mode aftear breaking preview highs – now up 300% from the original Febrary breakout.
(source: TradingView.com)
Ravencoin now boasts a market capitalization of nearly $140 million, according to CoinMarketCap.com
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