Bitcoin Looking to be Sent Back Down After Breakout Attempt - Price Analysis

OKB

OKEx’s exchange token has held up pretty well during the Q3 season of correction. It took only a modest hit during Bitcoin’s breakdown in late September, where some altcoins did much worse. And now, with what seems like a season of popping altcoins, it seems well set up to take advantage of the situation for some gains.

Starting on the daily OKB/BTC chart, we see that OKB has been ranging pretty tightly above a well-established support. The 0.618 retracement mark has not even been touched, suggesting plenty of support for this exchange token. What had been a promising formation up, looking like an ascending triangle, was poorly timed: just at the point of breaking out, Bitcoin’s dramatic breakdown in late September wrecked this setup along with many others.

A listless OKB

We can see that OKB, in the last few days, has regained the 55 exponential moving average (EMA) level after losing it during Bitcoin’s dump. This is encouraging, and if it can hold above here for the next few days, it can perhaps serve as a platform to jump back above 28k sats.

The indicators on this chart (not pictured), are all flat, with no hint as to where the trend lies. However, if we go to the OKB/USD chart, we see a more down-ish trajectory. OKB here has been falling for a while, and mostly holding in the low $2 area. It looks like a bottom could come soon, after a couple of waves to the downside since the summer.

Matching Bitcoin mostly

Owing to the slowness on the OKB/BTC chart, OKB here is mostly just mimicking Bitcoin’s movements. So here, everything depends on that 55 EMA on the OKB/BTC chart. Hold that, and we could see OKB start to plug its downtrend.

Bitcoin

The main story in crypto markets is always, of course, Bitcoin (for now, at least), which has recently tried -- and it looks like failing -- to reverse the downtrend laid in late September.

On the daily, we see the general shape of Bitcoin’s market since late September has been that of a bear flag. The tighter range has been between about $8,400 and $8,000, with repeated tests below $8k. A break up a few days ago gave hope to the idea that it could break back up and stave off a downtrend -- but after getting rejected at the 21 EMA, it doesn’t look like that will be happening.

Likely more downsideBTC chart by TradingView

We see the histogram here arcing down hard at time of writing, with plenty of sell volume already come in for the day. A doji candle closed yesterday’s price action, making it the perfect place for a reversal.

Here, it doesn’t look like Bitcoin’s downtrend is played out. We can easily anticipate here another leg down into further support -- after all, Bitcoin’s consolidation at $10,000 took months to play out. Its chance to somehow defy that downtrend now seems over, with a pretty clear rejection.

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