Bitcoin Weekly Analysis — 30/10/17
Oct 30 2017 · by Rabbi Ahmed
Category: Market Analysis
Bitcoin has continued its resilient run again, making another record high as yesterday’s price rallied and sold off just shy of the 6400 handle.
The High of last week @ 6203 Pont D proved to be a selling point, at least on a profit taking basis. We had almost a full week of range without direction, however yesterday bullish run on a Sunday with decent volume is may have caught some traders off guard.
One thing to note is that we still have not had a daily bar close above last week’s highs. A recap on the Technical Reasons why the market paused:
If we have a Daily Candle close above the 6203 high, Traders would expect a short rally towards the next Fibonacci target shown by the blue rectangle above current price where the short term bulls would be targeting the 6800–7000 levels for profit taking.
However, for the base for buyers who are looking at good retracement levels to buy at lower prices, we would first need to the market break below the red upward trendline as a first indication, then take out previous lows. If this was to happen we could see the market retrace and find support at the previous broken major highs @ approx. 5000–4700 on the longer term.
On the shorter term, we’re seeing momentum to the upside. However we are getting squeezed inside an ascending wedge. If we see the blue trendline above price break, then we would likely see the market rally to the 6800–7000 level as explained by the longer term daily chart also.
However if we manage to stay below this upward barrier formed by the channel we have shorter term support levels marked by the thick horizontal lines which traders can use as a launch pad to add buy positions.
Support Levels: 5661, 5409, 5160.
Risk must be managed, and these would more than likely not be levels to accumulate long term positions but rather for quick day trades.
Shorter Term traders must keep in mind the longer term charts. We have established that if the upward red trend line which has been tracking the lows of this market is broken, there is a chance to find the higher time frame support levels of the 4700–5000 levels which is a very attractive price for longs.
Rabbi Ahmed, Head of Sales and Trading, Bit Trade
Trading in bitcoin and other cryptocurrencies is speculative in nature, and comes with inherent risks. The analysis provided by Bit Trade is for informational purposes only, and should not be construed as investment advice.
Category: Market Analysis
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