Bitcoin is in a wedge formation which could determine the further course of the upward trend.

Bitcoin’s (BTC) current climber seems to be taking a short breather after reaching an annual high so far of USD 15,960 on 5 November.

In the one-hour and four-hour charts, the price contracts in a wedge formation that has found solid support at USD 15,500. Bitcoin must now break through the $15,750 mark to make another attempt to jump above $16,000.

With the last downturn, a Dragonfly doji candle has formed as the price tested support at the lower end of the wedge formation at $15,166. The more the formation moves towards its end, the more investors hope to jump above the $15,500 or $15,600 mark where a VPVR node is located. So resistance is likely to be expected here.

Although on the surface Bitcoin News Trader is clearly on an upward trend, behind the scenes there is a pulling and stabbing between the bears and bulls. A jump over US$15,600 would be important for the latter to tackle the US$16,000 hurdle again.

The Relative Strength Index (RSI) continues to climb above 70, which is a positive signal, although daily buying volumes have eased somewhat after some traders booked out partial profits at $15,900.

A downturn out of the wedge formation or under its support at $15,100 would open the door for a decline to the 20-MA at $14,680. During the brief crash on 4 and 5 November, no „new supports“ have emerged, and there is also a gap in the VPVR between $13,900 and $15,500.

So if the price falls below the USD 15,100 mark and investors do not interpret this as a buying opportunity, a downward pull to USD 14,000 or even USD 13,800 could follow.

A downturn of 9% or $1,400 sounds severe, but in this case it would be perfectly normal for the lower supports to be tested again after generating strong gains this week.

So while Bitcoin is waiting for the next directional move, the Altcoins, i.e. the remaining „alternative“ crypto currencies, have been able to recover some of their losses in the last two months. Ether (ETH) has made up most of the ground with an upswing to 447 US dollars and is pushing towards the 450 US dollar mark.

Yearn Finance (YFI) has also made strong gains, climbing more than 30% to USD 11,100. The Uniswap UNI token gained 15.5 %, which is enough for a price level of USD 2.53.

According to CoinMarketCap, the current total market capitalisation of the crypto markets amounts to 444.6 billion US dollars, of which 64.7% market share is accounted for by Bitcoin.

 

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