Bitcoin Back to Consolidation as Volatility Reapproaches 2018 Lows

2018-10-18 18:09

Bitcoin is back to consolidation after a sharp drop last Thursday and a spike this Monday. The sharp drop seen on Thursday was preceded by about two weeks of consolidation where price traded on low volume and volatility reached 2018 lows. We have currently returned to these conditions with Bitcoin trading flat for three consecutive days on low volume and volatility as measured by the average true range (ATR) dropping back towards lows.

The primary reason for this consolidation may be that Bitcoin is approaching the end of a triangle pattern which has been forming since January. There are mixed reports from analysts as to which way this triangle is going to play out. Some are predicting a bullish breakout whereas others see Bitcoin returning to sub-$6k levels. A bullish or bearish breakout is going to be important for the overall cryptocurrency market with Bitcoin representing around 54% of the total market cap of all cryptos. For the moment, it seems about an equal likelihood that it could move up or down. The daily RSI is trading close to 50 showing equal pressure from buyers and sellers.

Bitcoin Daily Chart – Source: Tradingview.com

The price on Bitfinex continues to trade at a premium due to being priced against USD Tether (USDT). The USDT stablecoin which is meant to be pegged US Dollar dropped to a low of $0.85 on Monday and has since retraced back up to around $0.96. This is causing around a 4% premium on exchanges which use the USDT to facilitate traders to speculate on the price of Bitcoin against the US Dollar.

Key Takeaways: Bitcoin returns to consolidation after a sharp drop on Thursday and spike in price on Monday. Price action approaches the end of a triangle pattern which has been forming since January. A bullish or bearish breakout seem equally likely with the RSI trading around 50 showing equal pressure from buyers and sellers. A breakout would have a significant impact on the overall cryptocurrency market cap with Bitcoin representing around 54% of the entire market cap. Bitfinex continues to trade at around a 4% premium after the USDT crash. 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.

Bitcoin Back to Consolidation as Volatility Reapproaches 2018 Lows was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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bitcoin consolidation 2018 lows volatility back thursday

Источник: blokt.com

bitcoin consolidation → Результатов: 75


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