2018-10-25 17:57 |
It is highly unusual for price action to come right to the point of a triangle pattern. Typically, a breakout either above or below the pattern as price approaches its end. As Bitcoin approached the end of the triangle pattern over the past couple of months, any breakout from price action has been brought quickly back inside the pattern.
The start of last week looked as if Bitcoin was going to bullish break out of the triangle, but a retracement back inside has been followed by sideways trading on low volume. Volatility, as measured by the average true range, has reached 2018 lows. The daily RSI is trading around 50 showing relatively equal pressure from what buyers and sellers remain in the market.
Bitcoin Daily Chart – Source: Tradingview.comPrice is currently trading at the 200 EMA. Price has been trading in a range from around $6380 to $6480, but the shorter term indicators will not hold much significance given that the price has been consolidating on low volume on the longer time frames. With volume being near the lowest levels for 2018, intraday traders will have less liquidity to make short-term trades. The risk is also higher as a potential breakout as Bitcoin comes to the end of the triangle could result in a short-term trade quickly moving in the losing direction.
Bitcoin Hourly Chart – Source: Tradingview.comPrices on exchanges which list Bitcoin against USDT continue to trade at a premium. The stable coin USDT which is meant to be pegged to the USD trades at 0.975 against USD. This means an approximate 2.3% premium for Bitcoin prices which priced against USDT.
USDT Daily Chart – Source: Tradingview.com Key Takeaways: Bitcoin approaches point of the triangle pattern which has been forming since January which is an unusual circumstance to be occurring such a pattern. Volatility trades at 2018 lows, and daily volume is close to 2018 lows. The market environment is not ideal for shorter-term traders due to the lack of activity. Exchanges pricing Bitcoin against USDT is trading at a 2.3% 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.Volatility Continues to Hit 2018 Lows for Bitcoin As Price Trades Sideways was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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