2018-10-4 16:14 |
Bitcoin is continuing its consolidation as the bulls, and the bears seem unsure on where to place positions for the next breakout. The daily RSI has been consolidating into a triangle and trading around showing there is equal pressure from both the buyers and the sellers. Volume is also far below the 20-period average daily volume showing there is not much strength from either the bulls or the bears recently. Volatility is also trading at a new 2018 low for the fifth consecutive day currently at 222.
The dominant pattern for traders to monitor remains the triangle pattern which has been forming since January. With the volatility low and the prolonged consolidation continuing a breakout becomes more likely as the triangle pattern approaches its end. Whether the breakout is bullish or bearish remains to be seen. Price action seems to be experiencing some resistance at the 50 EMA but a significant influx of buyers should be enough to overcome this.
Bitcoin Daily Chart – Source: Tradingview.comWhile the daily timeframe shows the consolidation and triangle pattern, the shorter term hourly timeframe shows more bullish movements price action has been recording yesterday. Over the space of a few hours, price increased from a price of around $6450 to an intraday high around $6650. Price has since started to retrace and may be experiencing some support at the 200 EMA.
The MACD has also started to converge back towards the centerline showing short-term momentum is shifting towards the sellers.
Bitcoin Hourly Chart – Source: Tradingview.com Key Takeaways: Bitcoin continues to consolidate as the triangle pattern approaches its end. 50 EMA seems to be providing some resistance on the daily chart. Volatility forms fifth consecutive low of low for 2018. Short-term momentum seems to be shifting towards bearish with MACD converging and crossing the signal line to the downside. 200 EMA may provide some short-term support. 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 [BTC] Continues Consolidation as Bulls and Bears Battle was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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