Technical indicators signals that the overall sentiment for Bitcoin is still bearish. Here is the technical analysis of the BTCUSD pair for short term trading.
November- 02, 2018 | AtoZ Markets
Bitcoin remains in a range-bound zone on the long-term outlook. The past two weeks have been an indecisive moment for the Bitcoin and other altcoins. At the time of press, Bitcoin is trading at 6,400 levels with the market cap of $110 Billion according to coinmarketcap.com data. In the last 1 Week, the price of the coin has dropped by $ -120.96 (-1.86%) with a total volume of over $ 1.49 Billion. The highest price, $ 6,498.83, was on Friday.
Analysis: BTCUSD to Face Bears in Short term
A Three Inside Down candlestick pattern has emerged in 1W and 5H timeframe with high reliability. The above-mentioned candlestick pattern is a more reliable addition to the standard Harami pattern. A bearish Harami pattern occurs in the first two candles. The third candle is a black one with a lower close than the second which is the confirmation of the bearish trend reversal.
Bitcoin is trying again to breach the descending trend-line. The zone from $6,330 to $6,430 serves as a tough resistance for the Bitcoin. Failing to break the crucial resistance might turn Bitcoin to again test $6,260 support level.
The 100 SMA line is below the 200 SMA on daily charts which indicates the path of least resistance is towards the downward direction. This indicates that a bearish pressure might return.
Stochastic is heading towards the north, so Bitcoin price might follow suit while buyers are in control. However, the oscillator is nearing overbought levels to signal exhaustion and a possible return in bearish pressure.
On the upside, if the price of Bitcoin attempts to break the strong weekly resistance which is near $6,600 zone than a massive upward rally towards $7,000 is likely possible. However, considering the less volatility, low volume trades and most indicators in red, a bearish pull towards $6,260 support might be seen.
- The Relative Strength Index placed at period 14 is valued below 50 which signals "Neutral" in weekly time-frame.
- The William%R signals the sell action on the short-term time-frame.
- MACD(12,26) – Sell signal in weekly charts.
- ATR(14) signals that Bitcoin is less volatile.
Bitcoin Weekly pivot points
The price of Bitcoin has a strong weekly support near $6,440 and resistance near $6,600 levels.
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