Bitcoin price is trading in a range-bound zone from $6,400- $6,800 zone, and struggling to surpass $6,800 from past few days. Will the bulls manage to break the crucial point at $6,800 this time?
04 October 2018- Yesterday, Bitcoin price was about to break the strong support zone near $6,360 but somehow manages to survive the bearish pressure. That was a strong signal that the buyers are still optimistic about Bitcoin. In the last 1 Day of trading, the price of the coin has surged by $ 130.49 (2.02%) with a total volume of over $ 314.00 M. The coin reached its highest price, $ 6,622.32 which was on 04 October 2018 at 04:10 GMT.
Since 9th August 2018, the price of Bitcoin has remained relatively stable in the range of $6,400 to $6,800. Apart from one instance in late September during which Bitcoin tested the $7,000 resistance level, the coin has shown a record high level of stability since June.
Bitcoin Technical Analysis for the Short-term Timeframe
So far, the $6,500 level has held strong through this week’s trading, helping to sustain the bulls’ current momentum as we approach the long-standing resistance that has held Bitcoin down for the whole of this year.
The positive signals on both the MACD(12,26) and RSI(14) indicators that suggest bears are weakening. Having already tested the lower support today, we would like to see buyers push on to the downtrend resistance above somewhere at the $6,600 mark, to remain within the current pattern.
On the 1D Bitcoin chart, we can see that the Bollinger Bands are binding tighter as the coin continues to collect between the $6,400 - $6,800 region. Also, the 100 SMA line is below the 200 SMA line which indicates the path of least resistance is to the downside. The above mentioned parameters suggests that a small correction is still awaited in the short-term.
According to Fibonacci Retracement charts, the price of the Bitcoin is trading above 38.2% Fibo retr. zone after unexpectedly moving from the lower levels. Somehow, Bitcoin manages to survive the bears from Yesterday's trading and successfully gained buyers attention. But as we see, the price is still trading in a range bound zone of $6,000- $6,800, a bullish break above the strong resistance is must for the coin to resume the rally towards $7,000- $7,200 levels.
Now, Bitcoin formed a strong support near $6360 levels which might be difficult to break. Now, if Bitcoin price moves above the $6,800 than a forward pull towards the next resistance level might be expected in upcoming days. On the other hand, if the price failed to remain above the daily strong support i.e. $6436 than a bearish rally might be seen again.
- The Relative Strength Index(14) value is near 50 which signals "Neutral"
- The William%R signals the neutral action on daily time-frame.
- MACD(12,26) – "Sell" signal in daily charts.
- ATR(14) signals Bitcoin is less volatile.
Bitcoin Pivot Points
Bitcoin has a significant weekly support near $6,360 and resistance near $6,830 levels.
Do you think Bitcoin price might struggle to break the $6,800 level? Let us know in the comment box below.