New Bitcoin Chart Analysis

From the above chart we can see Bitcoin’s price following a nice strong support line going back to early April of this year. It peaked at the end of June, near $14,000 and has put in a descending channel since then. However, the greater support trend line seems to be holding.

Traders can look to enter around $10,600. An area that would be somewhat of short term resistance. A move above that with some volume and staying power may confirm that the trend line has held and price action will increase. A break above the green resistance level ($11,600 or so) would show more strength and could bring the price to test the high of near $14,000.

A break below the the major supporting trend line ($9,800 or so) with volume and staying power would indicate a possible move to test the low channel support line at around $8,300. Below that and $8,000 and $7,500 become support areas to look at. However, the the move would really prove the bears are in control and the price could decline further.

Overall, this pullback seems to appear to be a pretty healthy move for the price action. It is a nice break and time for some profit taking and some consolidation.

Author: Saul DeLuzoro

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