Analysis: Bitcoin Price Might Break $7,000 Mark in Short-term

Bitcoin could set its sights higher as it gains more traction on its bullish breakout, aiming for $7,000 mark – the next target. Here is the Bitcoin Price technical analysis for short-term timeframe. 

09 October 2018- Bitcoin continues trading in a narrow range over the weekend without any significant breakthrough up or down although a sharp break has been expected for several days now. The coin is trading at $6,550 mark according to Bitfinex Exchange with a market cap of $114.78 Billion. In the previous two weeks Bitcoin traded between $6,750 and $6,250 zone. The data shows that Bitcoin is being squeezed in an ever-narrower price range.

This trading pattern indicates both bulls and bears are staying on the sidelines offering little directional bias to the price. The price of Bitcoin represented a marginal 0.50 percent gain over 24 hours and even just 1 percent over a week.

Bitcoin Technical Analysis

A Harami Cross Bearish candlestick pattern has emerged in 1M time-frame which signals a bullish reversal from this point for the short-term time-frame. After a long black candlestick at the low end of a downtrend, a white candlestick opens higher or at the previous candlestick’s close and closes at or around its open. The Harami pattern is more definite than the basic Harami indicator, and signifies a reversal for the bullish momentum. The smaller the second candlestick, the stronger is the reversal signal.

The weekly chart shows that Bitcoin was able to defend the $6,200 level the third week of December. However, there has been no strong upward move to follow through. Moreover, last week Bitcoin created a “Doji” candlestick pattern. This signals indecision for the movement of the Bitcoin price.

Additionally, the 100 SMA line is above the longer-term 200 SMA line which signal that the path of least resistance is to the upside. In other words, the bullish rally is more likely to resume than to reverse.

However, STOCHRSI(14) looks ready to turn downwards after coming close to overbought levels. The above mentioned indications suggest that buyers are exhausted and that sellers might be eager to return and push price back down. A pullback to the bottom of the channel around $6,600 could be seen. A larger dip could take Bitcoin price back to the triangle bottom around $6,400- $6,500 mark.

RSI(14) on the daily charts is pointing down to show that sellers are ready to return. However, if bulls keep pushing the prices through this current zone than the coin might make its way to the channel top at $7,000. Hence, for the short-term the price of the coin might face small corrections near $6,500- $6,400 levels. However, in monthly time-frame the price of Bitcoin might boost towards $7,000- $7,200 zone.

  • The Relative Strength Index(14) value is near 50 which signals “Neutral” in weekly time-frame
  • The William%R signals the buying action on the short-term timeframe.
  • MACD(12,26) – “Sell” signal in weekly charts.
  • ATR(14) signals Bitcoin is less volatile.

Bitcoin Daily Pivot Points

Bitcoin has a daily support and resistance near $6,600 and $6,730 levels respectively.