Bitcoin’s tumbling price pulled up by breach of descending channel

Bitcoin’s fall on 24th September caused its price to slide below $10k. The coin’s effort toward recovery has met with consequent falls. However, the king coin was undergoing a bullish pattern formation and the breach offered a bump to its tumbling price. Bitcoin, at press time, was valued at $8,221.19 with a market cap of $148.33 billion.

4-hour

Source: BTC/USD on TradingView 

The 4-hour chart of Bitcoin highlighted the breach of a descending channel that bridged the lower highs of BTC at $8,477.83, $8,326.67, and $8,006.92 and lower lows at $8,129.40 and $7,911.63. As the price dunked within the two falling parallel channels, a breakout toward the bullish side was imminent. The breach took place on 21 October pulling the price of BTC up by 4.57%, from $7,889.62 to $8,250.

However, 50 Moving average glided under the 100 Moving average indicating a bearish market, but as the averages aligned under the candlesticks, it might not be a strong bullish wave.

Source: BTC/USD on TradingView

MACD indicator indicated strong bullish presence in BTC markets, as the MACD line overtook the signal line after a recent crossover on 14 October. Even the Relative Strength Index showcased an increased buying trend suggesting a bullish market.

Bullish market ahead

The descending Bitcoin market appeared to have a bullish trend with the recent breach of the descending channel. However, this trend as indicated by the moving averages could flip overtime as the bears make a way in the BTC market.