After seeing a price drop over the weekend, Bitcoin [BTC] is looking to make a recovery. However, the charts seem to have something else in store for the coin’s price.
A pattern is forming between the $6150 – $6570 and $6750 – $6700 trendlines and is indicative of a potential breakout soon.
The 20-period Moving Average is acting as a resistance for the price at $6650. The price has bounced off this level multiple times.
The MACD is diverging below the histogram, and is exhibiting a bearish crossover.
The RSI dipped below the oversold mark, and is recovering above those levels. This occurred during the price drop.
Klinger Volume Oscillator crossed below the 0 mark, and is set to cross over the oscillator while it is moving upwards for a bullish sign.
The EMA is set to provide a resistance for the coin’s next rally at $6650.
The Awesome Indicator is flashing a bearish twin peaks signal, as the two peaks are above zero, and the second one is lower than the first one.
The $7360 – $6730 trendline is a very important one, as breaking past the $6730 limit will indicate a reversal in the trend. This is in contrast to the $6280 – $6570 line, which is moving upwards to set up a breakout.
The Weighted Moving Average is providing a resistance at $6680.
The Bollinger Bands indicate that the price is volatile, as evidenced by the wide interval between the bands themselves. The double BB is flashing a bear signal, as the price dips below the 1st Standard Deviation of the price.
The EMA is providing a resistance at $6640.
Bitcoin seems primed to continue its downward movement, as evidenced by the multiple indicators. However, the breakout might result in a reversal in the dominant downtrend that has kept the bears in power since the beginning of September.
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