2018-10-24 16:44 |
Last week started bullish for Bitcoin with a 10% spike in price. Since the spike, the price of Bitcoin has consolidated around $6400 on low volume. Volatility, as measured by the average true range, has formed new 2018 lows.
Traders have been anticipating either a bullish or a bearish breakout for the past few months, but neither has occurred as Bitcoin continues to trade in the triangle pattern it has been forming since January. The RSI is trading around 50 which is indicative of equal pressure from buyers and sellers. The volume is trading at about half of its 20-period daily moving average as many speculators stick to the sidelines.
A scenario whereby Bitcoin price continues to consolidate and the triangle pattern naturally comes to an end becomes more likely the longer the current sideways trading continues.
For the moment, the outlook remains neutral with there being no clear advantage to taking either a long or a short position. There is some resistance being experienced at the 50 EMA, but an influx of buyers should be enough to overcome this. Surpassing the 50 EMA, price action would be anticipated to meet resistance at the $6750 to $6850 range as it has done numerous times in the past. In the event of a drop, support should come into play between $6000 and $6250. $6250 has been a point of support on numerous occasions. Buyers would be expected between $6000 and $6100 as price approaches the large, round psychological number of $6000.
Bitcoin Daily Chart – Source: Tradingview.comPrices on Bitfinex and other exchanges which price Bitcoin against USDT continue to trade at a premium. The premium is currently around 2.5% and is due to USDT losing value against the USD. USDT sharply dropped against the USD to $0.85 early last week but has since retraced to around $0.97. With many USD stablecoin alternatives arising such as the Gemini Dollar, USDC, and True USD, USDT’s future remains uncertain.
USDT Sharp Decline at the Beginning of Last Week. USDT Daily Chart – Source: Tradingview.com Key Takeaways: A breakout becomes less likely as price continues to consolidate. Volatility has formed new 2018 lows. Volume is significantly low as many traders stay on the sidelines. RSI is trading at 50 showing equal pressure in buying and selling from what speculators remain. Exchanges which price Bitcoin against USDT continue to trade at a premium DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Where is the Bitcoin Breakout? Price Continues to Consolidate as Volatility Hits New 2018 Low. was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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