Pressure Mounts on Bitcoin Price If Unable to Hold Above 14k
As we entered the elections week in the United States, the Bitcoin price continues to outperform. It remains in a rising channel and, for as long as it stays within the rising trendlines, a bullish bias exists.
However, after it rose above the 14k over the weekend, in light liquidity, Bitcoin price failed to hold onto the level. Moreover, the rejection came from a dynamic level, increasing the chances of a bearish break.
Positive News for the Crypto Hodlers
Recent months brought many positive developments in the crypto space. After PayPal’s announcement that it will allow its US users to use crypto to pay for goods and services at the merchants it represents, another positive news came from Coinbase.
It just announced a Visa debit card that allows cryptocurrency to be used for payments. More exactly, the users can pay with crypto on purchases online, in-store, and even use the card for ATM cash withdrawals.
Another positive news for the investors in the crypto space came from an unexpected place. Iran became the first country to turn to Bitcoin at a state level, albeit understandable considering the ongoing sanctions it faces.
Bitcoin Technical Analysis
The technical perspective on Bitcoin is straightforward. Bulls will likely attempt to go on the long side by the time Bitcoin reaches the lower edge of the rising channel. On the other hand, bears will want to see if that level holds.
For bulls, going long at the lower edge of the rising channel should come with a stop-loss order at the previous higher low and a take profit at a new higher high. For bears, a break below $13k, and ideally a daily close below the level will open the gates for a move back to the pivotal $10k. To trade such a break, bears need a stop-loss at the previous high. This way, a risk-reward ratio of 1:3 on the short side exceeds the potential of a bullish trade.