Bitcoin drops to potential support zone
Fawad Razaqzada November 12, 2019 7:01 AM
Bitcoin has returned to an old resistance zone as it holds inside a falling wedge, which is meant to be a bullish continuation pattern.
Bitcoin has been trending lower ever since it topped out at just under $14000 in June.
Recently, though, it made a comeback attempt as it soared around 40% from a low of around $7300, but that rally fizzled out quickly as the psychologically-important and former support at $10K turned into resistance.
But now the price of Bitcoin has returned to an old resistance zone between $8300 and $8800. What’s more, Bitcoin is currently holding inside a falling wedge, which is meant to be a bullish continuation pattern.
So, what we are looking for here is a potential breakout from this falling wedge to the upside. Specifically, a move north of $9150 – the most recent short-term high – could trigger technical buying momentum.
HOWEVER. Until and unless that breakout happens, the path of least resistance will remain to the downside.
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