Bitcoin is currently trading within a very tight range. We've got overhead resistance from our long-term descending triangle or wedge formation depending on how you look at it, and we've got our support trend-line(s) from our previous bottoms and previous support area's that we hit earlier in the year. I believe there is 2 scenario's which could play out here over the next few hours.
1.) Bitcoin moves from its current levels to 6500-6550 before finding resistance and moving back down to test the trend-line(s) around 6200-6250. There is a chance it could break above 6500-6550, I discuss that below.
2.) Bitcoin is unable to sustain its current (albeit limited) upward movement and moves back down to test the trend-line(s) around 6200-6250. There is also a chance it breaks below 6200-6250, and I discuss that below as well.
Based on the 4-hour indicators I have shown, I favor scenario 1 as of right now. MACD on the 4-hour is showing upward movement following a bullish cross on October 12th, and the Squeeze Momentum indicator is showing signs of upward momentum alongside that. RSI is sitting at 48, which is right below the bullish zone indicating it has room to move to the upside if we did some upward price action. I think a test of the resistance zone around 6500-6550 should occur, and if we are unable to break through and have sustained volume and buying around those levels, then we could see a retest of 6200-6250. If we do get a break above that area, 6650 is the next area to watch, followed by 6700, then 6800. For a bullish trend to take place, we need to get above some of the key moving averages (50/100/200 day,) we need to get out of the descending triangle or wedge formation that we are in, we need to make a higher-low, and we need to maintain higher levels of volume throughout any upside action. On the flip-side, if 6200-6250 support (depends on which pattern you look at) is unable to hold, we could see a retest of 5800-6000. If the 5800-6000 area is unable is hold, we could be in for a wild ride down to 4000-4500 (if not lower.)
--This is not financial advice. Always do your own research and come to your own conclusions before buying/investing, as investing in cryptocurrencies comes with high risk and high amounts of volatility.
1.) Bitcoin moves from its current levels to 6500-6550 before finding resistance and moving back down to test the trend-line(s) around 6200-6250. There is a chance it could break above 6500-6550, I discuss that below.
2.) Bitcoin is unable to sustain its current (albeit limited) upward movement and moves back down to test the trend-line(s) around 6200-6250. There is also a chance it breaks below 6200-6250, and I discuss that below as well.
Based on the 4-hour indicators I have shown, I favor scenario 1 as of right now. MACD on the 4-hour is showing upward movement following a bullish cross on October 12th, and the Squeeze Momentum indicator is showing signs of upward momentum alongside that. RSI is sitting at 48, which is right below the bullish zone indicating it has room to move to the upside if we did some upward price action. I think a test of the resistance zone around 6500-6550 should occur, and if we are unable to break through and have sustained volume and buying around those levels, then we could see a retest of 6200-6250. If we do get a break above that area, 6650 is the next area to watch, followed by 6700, then 6800. For a bullish trend to take place, we need to get above some of the key moving averages (50/100/200 day,) we need to get out of the descending triangle or wedge formation that we are in, we need to make a higher-low, and we need to maintain higher levels of volume throughout any upside action. On the flip-side, if 6200-6250 support (depends on which pattern you look at) is unable to hold, we could see a retest of 5800-6000. If the 5800-6000 area is unable is hold, we could be in for a wild ride down to 4000-4500 (if not lower.)
--This is not financial advice. Always do your own research and come to your own conclusions before buying/investing, as investing in cryptocurrencies comes with high risk and high amounts of volatility.
Comment:
What a move. USDT fud sent Bitcoin soaring on tether exchanges, and it moved up to the 6800 resistance on the fiat exchanges. Our goal now is to find support at previous resistance around 6650 on the tether exchanges. We got a nice bounce of 6650 exactly on Binance, and so long as we can make this prior-resistance new support, we could be posed for some major gains. I'm still a bit concerned with the price disparity between exchanges, and it would be really good for the bullish case if Bitcoin can get above 6500 on the fiat exchanges while holding steady on the tether exchanges on that prior-resistance-now-turned-support we just discussed. Time will tell!