Analysis: Bitcoin Price Might Face Bearish Pressure in Short Term

Bitcoin price is consolidating inside a symmetrical triangle pattern on the short term charts while traders decide which direction to take. However, it seems to be some bearish pressure might pull the coin downwards.

17 October 2018, AtoZMarkets At present, Bitcoin is trading downward with the volume of $271.81 Million in last 24 trading hours. The price of the coin is now trading near $6,550 mark. In the last 1 Week, the price of the coin has moved by $10.86 (0.1661%) with a total volume of over $3.07 Billion. The highest price, $ 7,234.83, was on Monday, 15 October.

Moreover, the US government is interested in pitting Ripple’s centralized XRP coin against Bitcoin to tackle China’s crypto dominance. The digital currency is gaining popularity among millennial and investors in the US has led the Trump government to explore its potential.

Additionally, the recent spike in bitcoin prices is being attributed to the selloff in USDT, as well as the launch of Fidelity’s institutional platform for Bitcoin and Ether. This could bring in stronger volumes and increased activity in the crypto-market, which could potentially lift the prices of Bitcoin and altcoins.

Bitcoin Technical Analysis

The price of Bitcoin recently dropped below a short-term rising trend line and appears to be in the middle. If the broken support holds as resistance than the price could resume the slide to the Fibonacci extension levels. The 50% Fibo. retr. level lines up with support at the $6,100 area while the 61.8% level is closer to the swing low and $6,000 major support handle. However, the stronger bearish pressure could take Bitcoin down to the 78.6% extension below $5,900 mark in the short-term.

The 100 SMA line is below the longer-term 200 SMA line which indicates that the path of least resistance is to the downside. In other words, the bearish breakout is more likely to gain traction than to reverse. These MAs are also currently holding as dynamic inflection points near the broken trend line.

Stochastic RSI at period 14 clearly suggests that sellers have the upper hand, but the oscillator appears to be bottoming out without reaching oversold levels. This indicates that buyers are eager to return and push the price back up, possibly to the spike higher around $6,800 and beyond. RSI is treading close to overbought levels which also suggests that the price of Bitcoin might face selling pressure in upcoing days.

  • 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 Pivot Points

The coin has significant daily support near $6,650 levels and resistance near $6,870 levels.

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