Bitcoin’s descending channel pattern may reverse recent bearish onslaught
Bitcoin’s recent bearish break on 24 September pulled down its valuation by over 18 percent. Previously, the coin was consolidating comfortably above the range of $9500, but the breakout saw its price drop by almost $1500, down to $8,011.46. BTC failed to recover its loss after the decline and at press time, its valuation was recorded to be $8,486.7. However, the current price movement may have significant output in the long-term for Bitcoin.
The 12-hour chart for Bitcoin pictured a consistent descending channel that almost stretched back to the middle of August. Bearing a sense of optimism for the BTC community, the current formation panning out suggested the occurrence of an imminent bullish break. The breakout should see the price re-test the valuation at $8,829.96 and significant momentum may see the price scaling up to $9,329. The decreasing trade validated the formation of the pattern.
The MACD indicator also turned bullish in the charts, which improved the possibility of the break.
The 6-hour chart for Bitcoin suggested the formation of a similar descending channel. The pattern formed in the aforementioned chart had already witnessed its bullish breakout as the price movement exhibited minor surges. The Fibonacci retracement lines indicated that the immediate resistance for Bitcoin at the present moment was lined at $8706.47. $9792.25 remained the long-term resistance at press time, but in order for Bitcoin to breach and recover the losses of the previous decline, the price would need substantial momentum in terms of trade volume.
At the present time, the trade volume did not suggest another bullish breach at the moment, but the MACD indicator suggested the current price was dwelling in a bullish trend.
Over the past 15 days, major altcoins have been able to outperform Bitcoin in the charts. Hence, the predicted breakout symbolizes massive importance as BTC enters the last quarter of the year.