Bitcoin Price – BTC/USD Approaching Area of Interest

Bitcoin is still trending lower inside its short-term descending channel but might be due for a bounce to the top. Support held and a correction to the Fibonacci retracement levels is underway.

Price is testing the 38.2% Fib currently, and this happens to line up with the mid-channel area of interest. Holding as resistance could send Bitcoin back to the swing low around $6,450 or the channel support closer to $6,425. A larger correction could test the 50% Fib that lines up with a former support area that might now hold as resistance, as well as the 100 SMA dynamic inflection point.

The 61.8% Fib is just below the 200 SMA dynamic inflection point and close to the channel resistance, which might be the line in the sand for a correction. The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. The gap between the moving averages has been widening to signal strengthening bearish momentum.

Stochastic is heading higher to signal that bulls still have some energy left, and the oscillator has some room to climb before hitting overbought conditions. RSI also has some ground to cover before bulls are exhausted, which suggests that the correction could go on for a bit longer before sellers return.

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Bitcoin might even have enough momentum to break past the channel top, provided market updates also turn out positive. As it is, investors still seem to be holding out for more directional clues and hoping to get confirmation that the earlier rallies might be sustained.

Institutional investment could be a strong factor, but that might have to wait until early next year. The near-term catalyst would likely be the bitcoin futures on ICE Bakkt and it appears that traders are waiting to see how this might impact prices first.

SARA JENN · OCTOBER 29, 2018 · 1:30 AM

Heiko Closhen, Entrepreneur

Bitcoin – Can the Bulls Muster Up a Weekend Rally?

Bitcoin stuck in the ranges through the early part of the day, with the Bitcoin bulls needing to put some life back into the market to support a breakout.

Price action through the week was limited for Bitcoin, with a 0.06% gain on Friday one of only two days in the week where Bitcoin managed to avoid the red.

3-days in the red left Bitcoin down 0.88% for the current week, with Bitcoin now having fallen short of the 23.6% FIB Retracement level of $6,757 since 18th October, as the steam comes out of Bitcoin and the broader market.

After a relatively range bound start to the day on Friday, Bitcoin rallied to a morning high $6,597.4, breaking through the first major resistance level at $6,575.57 before falling back to the earlier part of the day’s ranges, with resistance at $6,600 pinning Bitcoin back on the day.

An early afternoon intraday low $6,511 held well above the day’s first major support level at $6,469.77, leaving Bitcoin at $6,500 levels through the day, a rare occurrence in the world of Bitcoin and reflective of the lack of volatility in the market.

On the news front, there was some chatter on SEC Commissioner Kara Stein’s view on the setting up of cryptocurrency funds, Stein stating that some internal guidelines on key considerations had been circulated, while she held back from confirming whether any regulated exchange traded funds would be approved before the end of the year.

The regulatory landscape continues to be one of the key obstacles for the SEC to give the green light, with the SEC Commissioner highlighting that there remains a need to get clarity on a range of regulatory issues before the markets can expect institutional money to flood in.

For now the cryptomarket and the Bitcoin bulls in particular, remain optimistic that the SEC will at least give the green light to the VanEck Bitcoin ETF, though it remains to be seen whether issues surrounding valuation, liquidity and custody have been sufficiently addressed.

At the time of writing, Bitcoin was up 0.33% to $6,552.9, with Bitcoin moving from a start of a day morning low $6,524.9 to a morning high $6,560 before easing back, the moves through the early part of the day leaving the day’s major support and resistance levels untested.

For the day ahead, a hold on to $6,550 levels would support a move through the morning high $6,560 to bring the day’s first major resistance level at $6,582.73 into play, while we will expect Bitcoin to fall short of $6,600 levels for a 3rd consecutive day, with the news wires likely to remain relatively silent on the regulatory front through the weekend.

Failure to hold on to $6,550 levels through the morning could see Bitcoin give up the morning’s gain to pullback through the start of the day morning low $6,524.9 to call on support at $6,496.33 before recovering, more material losses unlikely barring particularly negative news hitting the crypto wires.

Looking at the broader market, with Bitcoin’s dominance holding at around 53.6% and the crypto total market cap hovering at around $210bn, there’s been very little action across the majors with Ethereum continuing to hold onto the number 2 spot, Ripple’s XRP struggling to close the gap in spite of the Ripple team’s successes in the real world.

Bob Mason

43 minutes ago

Heiko Closhen, Entrepreneur

Bitcoin (BTC) Price Analysis – Which Direction Can It Break Out?

Bitcoin is stuck in consolidation for yet another day as it moves back to the triangle bottom.

Bitcoin continues to move sideways inside a symmetrical triangle and range visible on the short-term time frames. Price recently bounced off the range resistance and also the top of the triangle, setting its sights back on the bottom.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, selling pressure is more likely to persist. In that case, a break of the triangle bottom might be seen, sending price to the range support at $6,360 or onto a slide that’s the same size as the consolidation patterns.

Stochastic is also heading lower to confirm the presence of bearish momentum, but the oscillator is already dipping into the oversold region to signal exhaustion. Turning back up could revive bullish pressure and allow support zones to hold. RSI is starting to turn lower after previously cruising mostly sideways, also reflecting a pickup in selling pressure.

Investors seem wary about the launch of ICE Bakkt futures possibly as early as next month, likely recalling how the CME bitcoin futures launched last year are being blamed for the sharp drop that ensued since then. There is also some degree of wariness associated with the Tether controversy.

Looking ahead, traders could continue to hold out for any major catalysts that could spur and sustain a breakout in either direction. By the way developments are going these days, it appears that there could be further upside, particularly on positive regulatory updates and progress in institutional platforms.

Note that Fidelity will be making its institutional platform for bitcoin and ethereum more widely available as early as Q1 next year so anticipation could build up leading to it. After all, it could usher in strong inflows from banks and hedge funds eager to place bets on the industry.

Rachel Lee by Rachel Lee October 26, 2018

Heiko Closhen, Entrepreneur