Since the big sell-off that occurred on December 11, the price of Bitcoin has steadily appreciated with some interesting price action along the way. The $442 area is now a fairly established pivot zone; acting twice as resistance and another two times as support.
There is another major pivot zone that can be observed on the 30-minute chart, which just happens to be preventing the market from breaking higher. Of course I am referring to $461.50. This level gave the market some pause on the 15th, and is now acting as resistance once again.
Despite the two large sell-offs, the trend line has not been broken just yet. The 2-hour chart is showing that the market is getting into a tighter trading range. A triangle formation can also be made out quite clearly. Litecoin – which closely correlates with Bitcoin – is also showing a similar pattern. It is very clear that pressure is building up and that a violent break is imminent. If price breaks lower towards the pivot at $442, then the trend line will be violated, and that could be the trigger that breaks the current bull market.
Disclaimer: This is not trading/investment advice!
Image Source: 1
Chart source: https://www.okcoin.com
If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.