BTC Update 16.10.2018

BTCUSD

**BTC Update 16.10.2018**

**What happened yesterday with the price spike of Bitcoin was certainly not predictable by any TA on Earth.** That is what we call a Black Swan event. Something unusual that happens out of the blue and changes the picture and predictions. So as now the dust settles bit by bit, we are going back to our technical analysis and predictions on the Bitcoin (and respectively altcoin) markets.

Continuing our last TA update on the Bitfinex exchange we start from the point where our analysts team spotted heavy bearish divergencies predicting a further drop to $6100 support levels.

Since that didnt happen and we were shot up by Tether FUD, sending the market in fear and uncertainty, bitcoin is currently sitting at $6727 on bitfinex, with a price on bitcoin futures contracts at $6447 on bitmex exchange.

We believe in the short term price of Tether will return to its normal state from current levels of $0.96. That 4% premium on bitcoin price makes a difference of $268. That difference will have to be deducted from exchanges like bitfinex and binance once the price regains its value of 1/1 versus US Dollar.

So since the fluctuation on Bitmex is lowered, expectations are to see a dump on Bitfinex and binance.

Due to the extreme differences in the price we are analysing the exchanges separately. Since until now we only used bitfinex as a benchmark for our TA sessions, this is a fact that will be subject to a change in the foreseeable future.

Still on the chart shown at the screen we expect Bitcoin to go down during the next few days.

**This implies two targets in mind on bitfinex and binance, first of them beeing the $6670 area, second would be $6440 area.** Once the price achieves equilibrium again, we will be able to make another more educated prediction.

For this sole reason of uncertainty yesterday we advised our premium members to escape from the market into Tether when bitcoin was priced around $7000 with the sole purpose of short term accumulation of more bitcoin.

Since $6440 levels are a pivotal support point on the weekly chart, we expect it to act as a decision point once reached on the next direction bullish or bearish of the market.

We must allow for some more time for price action to develop and next update will follow up since we are also eager to understand the most probable next move for Bitcoin.
**Stay tuned!**