Areas to watch: trading volume and higher lows

Areas to watch: trading volume and higher lows

Gate Trade News Thursday, February 13, 2020 28 0

If bulls fail to flip the $10,300-$10,400 zones to support Bitcoin price could pullback to the support at $10,163 and $10,080. Below this level, the next stop would be at the lower trendline of the ascending wedge at $9,785, which also lines up with the 50-day moving average. 

If the price drops from the ascending wedge, the traders will show their interest at $9,450, which is slightly below the 23.6% Fibonacci retracement at $9,500. Given that the majority of recent dips have been bought into at higher levels than expected, traders anticipating a pullback might set their buy orders slightly higher than the supports where bounces are expected. 

As the price continues to fight the $9,300-$9,400 zones, some things to watch for would be any declines in purchasing volume on the shorter time frames and whether or not the pattern of higher lows is broken on the 6-hour and daily timeframes. 

These signals would hint that an ascending wedge breakdown could occur but given the current state of the market, this scenario seems unlikely.