Analysis

Tether bitcoin price
Advertisement


Bitcoin on Sunday jumped 2.13 percent against the US Dollar as USD-pegged cryptocurrency tether (USDT) resumed its implosion.

BTC/USD was in a sideways sentiment for most of the weekend trading session. The bearish trendline has capped the upside bias on multiple occasions. Nevertheless, the pair — from the past 8 hou rs to the time of this writing — has persuaded a successful breakout action, breaking the cap mentioned above and forming new intraday highs towards 6464-fiat. At the same time, CoinMarketCap.com is showing a massive drop in Tether value — about 4 percent — mirroring the scenario of the October 15 trading session that prompted a massive upside rally throughout the cryptocurrency market.

BTC/USD Technical Analysis

The breakout action has allowed BTC/USD to retest October 24 high towards 6470-fiat while jumping above the pair’s 100H and 200H simple moving averages. The RSI momentum indicator has also jumped towards a favorable buying area owing to the recent upside volatility. And, the Stochastic Oscillator is already inside its overbought area, awaiting correction.

The BTC/USD price action is also forming a rising channel (the dotted one) as of now, with a particular tendency to treat the lower black-dotted trendline as support. If the pair continues the uptrend, one might check the said ascending dotted support line as a potential reversal target off every near-term downside correction.

Nevertheless, BTC/USD is already in a breakout action following the invalidation of the descending trendline depicted in blue. There could still be a bull trap possibility so placing a stop loss to maintain every long/short trade would be advisable.

BTC/USD Intraday Analysis

We have exited our long position towards 6421-fiat on considerably moderate profits and are now entering a new range defined by the Fibonacci retracement swing from 6032-low to 6810-high. The new range has 6421-fiat acting as a new interim support and 6470-fiat as the intermediate resistance level with a sight towards 6513-fiat as the potential interim resistance.

As usual, we are first entering a long position towards 6470-fiat while maintaining a stop loss 3-pips below the entry point. A break above the said long target would have us open another upside position towards 6513-fiat. In this position, a stop loss order just 3-pips below the entry point will define our risk management strategy pretty well.

Conversely, a pullback action makes the lower dotted rising trendline our most likely support level. That said, we’ll enter a short position towards this said level while maintaining our stop loss 2-pips above the entry point. If the lower trendline gets broken during an extended bearish correction action, then 6300-fiat will become our primary downside target.

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.

Advertisement


Products You May Like

Articles You May Like

Bitcoin Price Decline Will Persist until Mid-2019: Crypto Analyst Willy Woo
Bitcoin & Crypto Trading Hints & Tips – Technical Analysis – Key Indicators
Bitcoin trading performance review and audit
Bitcoin Mining in August 2018 – Still Profitable?
Michigan Secretary of State Nixes Crypto for Political Donations

Leave a Reply

Your email address will not be published. Required fields are marked *