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Breaking a bullish flag will decide whether the price of Bitcoin hits $ 16,000 or returns to $ 14,000

November 7, 2020

Bitcoin (BTC) price seems to be taking a little breather after hitting a new annual high of $ 15,960 on November 5th.

The 1 hour and 4 hour timeframe shows price compression within a flag and for most of the trading day the USD 15,500 level was held as support. The $ 15,750 level is the hurdle that Bitcoin must overcome to reach $ 16,000 again.

BTC / USDT 4-hour chart. Source: TradingView

A dragonfly doji candle formed in the past hour as the price declined to test the lower support of the bullish flag at $ 15.166 and as the formation drew near. Your final traders will be looking for a breakout penetrating $ 15,500 to hit $ 15,600 where a high volume VPVR node lurks.

Breaking a bullish flag will decide whether the price of Bitcoin hits $ 16,000 or returns to $ 14,000
Breaking a bullish flag will decide whether the price of Bitcoin hits $ 16,000 or returns to $ 14,000

It’s clear that quite a fight is going on between bulls and bears, and converting the $ 15,600 level to support with a 4-hour close increases the chance of BTC making a third run to the $ 16,000 mark.

The RSI also continues to climb above 70 which is a bullish sign, however The daily volume of purchases has decreased somewhat after some traders decided to withdraw their profits when the price of BTC rose to $ 15,900.

Alternatively, a drop below the flag support at $ 15,100 opens the door to hit the 20-day moving average, which is currently at $ 14,680. The rapid and near vertical breakout that occurred between November 4th and 5th came with no “new support” and like the volume profile, the visible area shows this There’s a gap between $ 13,900 and $ 15,500.

In the event the price drops below $ 15,100 and buyers don’t see this as an opportunity to purchase during a slump, there is an option to retest the $ 14,000 to $ 13,800 level as a support.

While a 9% ($ 1,400) decline is somewhat worrying, Retesting the lower support is perfectly natural and healthy after strong rallies like the one we’ve seen this week.

Altcoins finally found their way

Daily market chart for the crypto market. Source: Coin360

As the price of Bitcoin seeks direction, altcoins have regained part of the vast territory they lost in the past two months. Ether (ETH) is the most notable leader of the last few days, since the altcoin It hit $ 447 and is currently trying to break the resistance at $ 450.

Yearn Finance (YFI) It also took a strong move, rebounding more than 30% to $ 11,100. The sign Uniswaps UNI did their thing too, adding 15.5%. Currently the price is USD 2.53.

According to the data from CoinMarketCap, The total market cap for cryptocurrencies is currently $ 444.6 billion, and Bitcoin’s dominance rate is 64.7%.