Bitcoin Price Might Test Monthly Lows Prior to Bullish Rally


24 October 2018, AtoZ Markets Bitcoin price is trading near $6605 mark with the 24 hours volume of $230 Million. The coin has a market cap of $113 Billion according to the coinmarketcap data. Since the last week, the coin makes a marginal downward move of $ -48.07 (-0.7%) with a total volume of $ 1.47 Billion. The highest price, $ 6,645.20, was on Sunday, 21 October 2018. 

According to coindesk, the newest commissioner with the US SEC met with representatives from money manager VanEck and blockchain startup SolidX earlier this month to discuss a bitcoin-based exchange-traded fund (ETF).

Elad Roisman, who took office in September, met with Dan Gallancy and Dimitri Nemirovsky at SolidX, Laura Morrison and Kyle Murray from the CBOE and Adam Phillips from VanEck to discuss a rule change proposal the companies submitted as part of an effort to launch a bitcoin ETFs. 

The ETF's proponents shared a similar presentation with Roisman which they had previously presented to the US SEC. The ETF share price will be roughly around $200,000 or 25 Bitcoin per share. The Trust which is holding the bitcoin will also be insured against the loss or theft of the coin. 

Bitcoin Technical Analysis

The price of the coin continues in a range-bound zone. The strong bearish pressure within ensures that the Bitcoin has made a new low of $6,524 on 23rd of October, as against the low of $6,535 on 22nd of October at the support zone.

The price of Bitcoin then reversed within the range with the bullish formation at $6,540. Before the trading session ended the price of Bitcoin was up at $6,580 in the resistance zone. However, temporary declines against further upward price movement occurred at the 50 Exponential Moving Averages.

The 100 SMA line is below the long term 200 SMA line which signals that the path of least resistance is towards the downward direction. In other words, the bearish breakout is more likely to gain traction than to reverse.

If the price of the coin fails to hold the $6,500 support than a downward rally towards the 11th October lows of $6,220 might be seen. Also, even more losses could be expected below this point.

  • The Relative Strength Index placed at period 14 is valued near 50 which signals "Neutral" in weekly time-frame.
  • The William%R signals the selling 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 $6020 and resistance near $7,430 levels.

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