Bull flag breakout will decide whether Bitcoin price goes to $16K or $14K


Bitcoin value (BTC) seems to be taking a brief breather after reaching a brand new 2020 excessive at $15,960 on Nov. 5.

The 1-hour and 4-hour timeframe present the worth compressing inside a flag and all through the vast majority of the buying and selling day, the $15,500 degree has held as assist. $15,750 is the extent Bitcoin wants to interrupt with a purpose to pursue one other stab at $16,000. 

BTC/USDT 4-hr chart. Supply: TradingView

Throughout the final hour, a dragonfly doji candle fashioned as the worth swept low to check the decrease assist of the bull flag at $15,166, and because the formation approaches its terminus merchants will search for a breakout which is able to push via the $15,500 to $15,600 degree the place a excessive quantity VPVR node lurks.

Clearly, there’s a small tussle going down between bulls and bears, and flipping the $15,600 degree to assist with a 4-hour shut will enhance the likelihood that BTC will make a 3rd run on the $16,000 mark.

The RSI additionally continues to rise above 70, a bullish sign, however each day buying quantity has tapered off a bit after some merchants secured income as BTC surged to $15,900.

Alternatively, a drop under the flag assist at $15,100 opens the door for a contact of the 20-MA at $14,680. The swift, almost vertical breakout that occurred from Nov 4 – 5 occurred with out establishing any ‘new helps’, and because the quantity profile, seen vary reveals there’s a hole extending from $13,900 to $15,500.

Within the occasion that the worth falls under $15,100 and patrons don’t understand this as a dip-buying alternative, there may be the potential for a retest of the $14,000 to $13,800 degree as assist.

Whereas a 9%, $1,400 drop is un-nerving, decrease assist retests are completely pure and wholesome after robust rallies just like the one seen this week.

Altcoins lastly discover their method

Crypto market each day value chart. Supply: Coin360

As Bitcoin value searches for route, altcoins have regained a smidgen of the huge territory misplaced over the previous two months. Ether (ETH) is essentially the most notable chief of the previous few days because the altcoin rallied to $447 and is at the moment making an attempt to interrupt via resistance at $450.

Yearn Finance (YFI) additionally made a robust transfer because it rallied greater than 30% to $11,100. Uniswap’s UNI token additionally made waves at it added 15.5% and at the moment trades at $2.53.

In response to CoinMarketCap, the general cryptocurrency market cap now stands at $444.6 billion and Bitcoin’s dominance price is 64.7%.