Bitcoin has removed the pessimism out of a big pennant in the past 24 hours, as several sellers fight to maintain Bitcoin below the major $6,800 resistance level above. In the absence of any harmful news and with a significant fall in BTC/USD lows on the futures market, we can surmise that the 2.1% fall from Sunday's Sept 23 close is a small manipulative trend.
In August 2018, Bitcoin was increasing towards its long-standing downward resistance after recovering from the $5,800 level. Just as the crypto was within $100 of eventually breaking this dander zone level, a hefty 10,000 Bitcoin low position was placed and a massive volume of BTC was messed briefly after; with the crypto crashing $2,000 just in 2 weeks.
Presently, BTC is near to hitting the sloping resistance once more, after taking close to 3 weeks (18 days) to rebound out of the previous weighty sell-off. There is also a mega bullish indication that has just surfaced on the 7-day chart that tells big news for the digital currency continuing to the fourth quarter (Q4).
Due to this, it makes a lot of sense for market manipulators to attempt to crash the crypto's price so that they can purchase back in cheap before it indeed begins to flourish.
Declining wedges are normally significant continuation trends. Nevertheless, Bitcoin has hurdles to jump before it arrives at consolidation where the reversal section normally comes to pass. Considering how the wedge is drawn, the consolidation level could be around $4,400 to $5,000 point. This implies that Bitcoin could strongly decline more 33% from its present price before we could hope a bullish recovery.
There is a potential bullish indication that has surfaced on one indicator in this case, which alludes that BTC perhaps is about to do something completely different than these two patterns.
On the MACD indicator more than 1W candles, we can obviously observe that the 12MA (blue) has ultimately passed more than the 26MA (red) for the first time ever since Oct 24, 2016! (Yellow arrow).
This shows that very strong purchasing momentum has again come to BTC and as long as 12MA goes on to hold more than 26MA, we should hope for a bull run soon.
The first target for BTC will go on to be the $6,800 level and from there would want to see if we eventually break the sloping resistance which currently stands somewhere close to the $6,900 region. From there the $7,400, $8,500 and $10,000 marks will be significant tests for the giants to surmount.