Bitcoin Outlook: USDT Causes Bitcoin to Touch $7,200 levels

Bitcoin has surged more than 10% in past 24 hours with altcoins following the same pattern. Here is the Bitcoin outlook for the short-term timeframe. 

15 October 2018, AtoZMarkets Bitcoin, the world's largest cryptocurrency by market cap has jumped more than 11% on Monday. The price of the coin surged above $6,900 mark for the first time in a month. Additionally, Bitcoin reached a market cap $115 Billion after the price hike with 24 hours volume of $821.01 Million. Meanwhile, all other altcoins also have seen a similar rebound roughly at the same time. Ethereum and Ripple also seem to outperform in the past 24-hours with huge volume trading tough. 

The sudden drop of Tether (USDT) led the price of the stable coin to drop by around 6 percent towards $0.94$ mark. The sudden drop in the value of Tether (USDT) formed a premium on Tether-integrated cryptocurrency exchanges. Also, Bitcoin is being traded with a significant premium on exchanges such as OKEx and Huobi that have integrated USDT recently.  

Bitcoin Technical Analysis for Short-Term

During the past few trading hours, Bitcoin broke the $7000 mark as the cryptocurrency market pumped. The coin has added about $20 Million into the market. Bitcoin has corrected to trade around the $6,800 mark, with USDT premiums on Bitfinex exchange keeping the price at around the $7,400 mark.

The price hike by the coin was up to $7,200, marking a 12% increase at the height of the rally. The price is currently up by 5.12% over the past 24 hours. The price of Bitcoin was trading in a closed space over the past month and remained unable to go past the $6,600 mark. This was defined as a crucial resistance level for the coin, with multiple rebounds over the past month. The coin formed a new resistance at $6,950 mark after the sudden spike.

On the weekly charts, the 100 SMA line is far above the 200 SMA line which suggests that the parth of least resistance is to the upside. In other words, the bullish rally is more likely to resume than to reverse. However, STOCHRSI(14 ) and CCI(14) in daily time-frame looks ready to turn downwards after coming close to overbought levels.

If Bitcoin can surpass the $7,300 monthly resistance level in the short-term, it will be possible for BTCUSD to initiate a long-waited rally to the upside. However, if Bitcoin fails to breakout of a major resistance level, then there exists a possibility that it might struggles to maintain momentum and falls back to the $6,200 level.

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

Bitcoin Weekly Pivot Points

Bitcoin has a significant weekly support near $6,126 mark and resistance near $6,622 mark.

Do you think Bitcoin might again break the $7,200 mark in upcoming days? Let us know in the comments section below.

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