Bitcoin price analysis: Buy the item, Sell the news

Bitcoin's price continues to deflate after the rejection of last week's ETF BTC. By now most traders will want to know if it's a short-term bear trend or if BTC returns to infinity at $ 6k.


Market Overview

There was a time when the slightest voice sent tremors through the market and also increased the most incoherent altcoin by 20% minimum. Alas, it seems that those days have long since passed. Outside of the Bitcoin ETF this month and the delirium, very little positive news from this week's bitcoins has resulted in a price increase.

The news that a Starbucks partnership with Microsoft that could eventually lead customers to pay for their milks with Bitcoin seems to have produced a pop over $ 7.400 on Friday. However, BTC 0 0 quickly withdrew. It seems that buying a coffee with the concept of Bitcoin is not as simple as it seems. A secondary company will receive a cryptocurrency instantly converted to fiat for Starbucks. Nonetheless, a victory is a victory and cryptocurrencies need further integration into current payment systems in order to stimulate wider adoption.

In other news, Robert Sluymer of Fundstrat states that Bitcoin is at a crucial stage "It will bounce off its recent lows and will continue to move or crumble under pressure and will return to $ 6,000.

The week has also provided a bit of controversy as some investors will be successful once OKEx will issue their " back " policy after the forced liquidation of a massive $ 433 million futures trade.

And finally, the Central Bank of Denmark claims that Bitcoin is not " real money " while a study UBS suggests that Bitcoin requires $ 213,000 to evaluate currencies to supplant the US dollar.

FUD or not, Bitcoin seems to be stuck in a bearish track and it will take some substantial purchase volume to make it leak out.

Now let's take a quick look at the charts [19659019] Daily Chart

  itcoin fell to a minimum of 2 weeks at $ 7,288, and the weekly chart shows that a lower minimum has been set.

Bitcoin fell on the weekly low at $ 7.288 and the weekly chart shows that a lower peak has been set and BTC appears to contract as it consolidates in preparation for a possible breakout at $ 7,576 which previously served as support and aligned with the Fib retraction level of 23.6%.

Earnings above $ 7,576 should extend up to $ 7,753 which also provided strong support and align with the 38.2% retracement of Fibers but the 100-day MA is located slightly above this shelf at $ 7,800 and could reject further gains like this was a strongly contested resistance a few weeks ago.

The 20-day MA collapsed far below the 100-day and 50-day MA, suggesting that the bulls are in control. However, the combination of today's bottom-up trendline and an RSI that is now coming out of bearish territory suggests the possibility of a breakout that could range from $ 7,550 to $ 7,750.

Alternatively, a less rosy interpretation of the same 4 The chart shows that the BTC is constantly rejected in the short and long term moving averages, in addition to the performance of the maximums of less than 4 hours which indicate that the bears are at the helm. BTC could increase resistance by 23.6% or 38.2%, but this would require a shift above 20 and 100 days moving averages.

This could prove to be a difficult situation since the 20 MA is below the resistance of $ 7,575 and the 100 MA is above the 38.2% Fib retracement level. Below the new low, $ 7.200 serves as soft support and is followed by a stiffer support at $ 6,750.

Daily Chart

  Similar to the 4 hour chart, BTC is stuck between $ 7.400 support and $ 7.500 resistance overload.

Similar to the 4-hour chart, BTC is stuck between $ 7,400 support and $ 7,500 resistance overload. The same pattern of rejection of moving averages can be seen as the BTC continues to meet resistance at the MA of 20 and 100 days. At the time of writing, the RSI is flat at 50 while the Stoch is oversold long, but a review of both oscillators on the 4-hour chart supports the possibility of a breakout as described above.

The 55 EMA and 20 The MA on the daily chart continues to rise, which gives further validity to the interpretation of the current downward trend as a short-term downtrend, but there are few supports below $ 7,350 – $ 7,200 therefore a fall below this point could lead BTC to revise $ 6,750. [19659029] Looking forward

BTC could break out at $ 7,550 – $ 7,750 in the next 24 hours, but it is likely to meet resistance at $ 7,800 where it is the 100-day MA.

Those who trade on the 30-minute, 1-hour, and 4-hour chart could set their sales orders a little less than the moving averages and the former supports as there is a model of rejection in these points on the 4-hour chart. This chart at 1 hour suggests that failure to maintain the $ 7.400 support will drop BTC to $ 7,100 – $ 6,800 but most charts show little support below $ 7,350 up to $ 6750.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think the price of Bitcoin will go this weekend? Let us know in the comments below!


Images courtesy of Tradingview.com, Shutterstock

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