by Viko

This week was a pendulum week for Bitcoin as sellers gained a stronger momentum for the first 3 days of the week. The world’s first cryptocurrency started with a drop, losing 3.56% on Monday. This is noteworthy because, on that day, Bitcoin (BTC) formed a long wick candle, suggesting exhaustion of buyers. The price rally started near $9200, touched $10,000, and came back settling at $9300. There was a slow and steady decline in Bitcoin below the $9,400 support against the US Dollar. Moreover, BTC price also traded below the $9,200 support area. Finally, it spiked below the $9,000 support on Wednesday but remained well above the 100 simple moving average (4-hours MA). The volatility in the markets is visible in the figure above. The bulls can go further to a support level of $9,400 if the volume increases. Otherwise, the bears will bring the rate back down to a support level of $9,000.

If there are more gains, the price could continue to rise towards the $9,500 and $9,600 resistance levels. Besides, the main resistance is near the $9,750 level. It represents the 50% Fib retracement level of the downward move from the $10,500 high to $8,900 low.

2 days ago, Bitcoin price struggled to start a fresh increase above $9,400 against the US Dollar. Therefore, there was a risk of another drop below the $9,000 support in the near term but the bulls took charge (yet struggling) and climbed barely above $9200 breaking the 100 MA support. It seems like the 76.4% Fib retracement level of the upward move from the $8,951 low to $9,452 high is acting as a decent support. However, the main support is near the $9,000 level, below which there is a risk of an extended decline towards the $8,950 and $8,830 levels.

There are still many hurdles near the $9,200 and $9,300 levels. More importantly, the 100 hourly simple moving average is also near the $9,300 level hence, the prices are fluctuating near this level. The daily chart reveals that the pair has been fluctuating between the 100-day and the 200-day MAs in the past seven trading days. If the pair succeeds to make a daily-close above $9,600 (100-day MA) it is likely to target $10,000 (psychological level/Fibonacci 61.8% retracement of June rally/October 28th high) in the near-term ahead of $10,540 (October 26th high). Additionally, if the 200-day MA crosses above the 100-day MA, this could also be seen as a bullish sign and attract more buyers into the market.

Source — Fxstreet

In addition, the MACD indicator is losing ground, forming an upcoming decline. In short, there will be a retest of the $9,000 mark next week. The MACD is in bullish zone and the entire market hopes it complies with MACD by outpouring the order books to a new high. This isn’t the only sign that should have bulls buzzing if bulls buzz anyway. An analyst going by Mitoshi Kaku noted that the one-month Ichimoku Cloud’s first lead line has crossed above its second for Bitcoin, flipping green for the first time in months. He wrote in a response to the inquiry about the indicator that this “could be the start of something beautiful”, referencing the idea that the Ichimoku Cloud is currently predicting that BTC is soon to enter a long-term bull market. That said, the key will be an upcoming decline; If slow, and in three waves, then we can expect more upside, but if strong and sharp, then be aware of a turn back to the lows.

This week, the top 10 coins are in the green, with EOS (EOS) standing out from the pack with a 3% increase since yesterday. The Bitcoin Dominance Index keeps decreasing and currently makes up 67.25%. The market capitalization of all crypto assets, the value of Bitcoin and all other cryptocurrencies — is about to form a golden cross. The golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market. Basically, the short-term average trends up faster than the long-term average, until they cross. In this case, the golden cross will see the 50-day exponential moving average (EMA) cross above the 200-day exponential moving average. This past week, Ethereum started a downside correction below the $188 and $185 supports against the US Dollar. Moreover, ETH traded below the $182 and $180 support levels. However, the $178 support area (the previous resistance) acted as strong support. Besides, the price managed to stay above the $175 pivot and the 100 simple moving average (4-hours).


Nov 3, 2019

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