Bitcoin Price Eyes Move to $6.8K After Bull Breakout

Bitcoin could be about to make a move towards $6,800, having witnessed a bullish triangle breakout yesterday.

The leading cryptocurrency, which had been in a narrowing price range, closed at $6,423 yesterday, confirming an upside breakout.

With the move, the bulls look to have come out victorious in a months-long tug-of-war with the bears. However, BTC is struggling to find acceptance above the immediate resistance of the 50-day exponential moving average (EMA), currently at $6,450.

However, the EMA hurdle could be crossed in a day or two and prices could rise to $6,800 in the near-term, as the ethereum-bitcoin exchange rate (ETH/BTC) is looking north, representing a rising demand for alternative cryptocurrencies.

This is because fiat money enters the market via BTC. As a result, it’s dollar-denominated exchange rate tends to go up during times of increased risk appetite in the market.

At press time, BTC is changing hands at $6,400 on Coinbase, having clocked a high of $6,440 earlier today. The cryptocurrency is up 1 percent on a 24-hour basis and is largely unchanged week-on-week.

Daily chart

The symmetrical triangle breakout seen in the above chart indicates the scope for a retest of recent highs above $6,800.

That target looks achievable as the breakout is backed by a bullish crossover on the moving average convergence divergence (MACD). Further, the relative strength index is holding in a bullish territory just above 50.00.

ETH/BTC daily chart

The falling channel breakout and a convincing move above the former support-turned-resistance of 0.031994 (Sept. 25 low) indicates a bearish-to-bullish trend change.

The rising MACD histogram is suggesting that further gains could be in the offing. The RSI of 53.00 is biased toward the bulls.

Thus, ETH/BTC looks set to rise in the near future.

View

  • Both BTC and the ETH/BTC are looking north after the technical breakout.
  • An increased risk appetite is seen lifting BTC above the 50-day EMA of $6,450. That would open the doors for a sustained rally to $6,810 (Oct. 15 high).
  • The short-term bullish outlook in BTC would be invalidated if prices see a UTC close below Oct. 31 low of $6,200.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via CoinDesk archives; charts by Trading View 

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.



Author: Omkar Godbole

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