Three Fundamental reasons why Bitcoin is moving higher
- The global markets are pricing up in an expectation of democratic win for the Presidential Election of 2020. Analysts say that this will ensure that there is more fiscal stimulus coming, which will result in the devaluation of the U.S. dollar and a relative rally in the price of Bitcoin .
- More institutional capital continued to flood into Bitcoin and this market this past week. U.K. fintech company Mode revealed it would deploy some of its cash into BTC . Also, Grayscale Investments shared it has seen massive institutional investment after already reporting a record quarter of over $1 billion in investment.
- PayPal confirmed its support of cryptocurrencies this week with an intent to support the purchase and sale of top coins like Bitcoin , along with digital asset payments. There are also rumors that the company is looking to acquire crypto firms, namely BitGo.
Are there any technical confirmations?
We can see at the short-term timeframe chart Bitcoin price broke down ascending which resulted in sideways trends shift. Afterwards the price action attempted to break it above but got a rejection. Within this day Bitcoin has consolidated and finished Inverted ( IHS ) pattern at the psychological level of $12 900 which is also at the top of the channel.
Taking into account both Fundamental and technical sides we can sum up that there is a very high probability of Bitcoin price continues upward movement till the end of October. Hedge your positions with tight risk management settings. Our next target is FIb 1 level which is around $13 250 zone
The candle has both shadows up and down. Upside pressure is strong too
Currently there are more bearish signs and we consider wait till the price reaches Fib 0.236 retracement level to make a small purchase. In case of bounce confirmation from this level we will make addition purchases while our new long targets will be $13 750. In case Fib 0.236 level does not withstand we plan to enter short position until Fib 0.5 which is around $12 333 zone
How can we conclude price successfully bounced?
A local pivot is formed right at the support level. This is a median level which can attract price action movement. The bounce is confirmed if price goes above $12 946. We placed the rest part of purchase amount at this level. In case the price goes below $12 770 we can conclude the pivot is rejected and Bitcoin's price will continue its downtrend
1. Buy at $12 980 and sell at $13 250. The position brought base 2% which resulted in 10.% with 5x leverage
2. Buy at $12 818 and sell at $13 750. The position brought base 7.3% which resulted in 36.5% with 5x leverage
Summing up we made 46.5% ROE to investments with marginal BTC trades which you could copy using our shared analytics
Currently Bitcoin broke down into the broadening wedge and parallel channel. We expect further decrease but there is not enough proofs to make entry position analytics. So we will come back to you with new trading session once the market will be more certain, stay tuned!