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Bitcoin (BTC) Price Analysis: Closing in on Major Support Zone

Bitcoin had a pretty steep drop in the past 24 hours, taking price close to the long-term floor around $6,000 once more. A bounce off this area could lead to another test of nearby resistance levels or even stronger bullish momentum as many are hoping to buy on dips.

The 100 SMA is still above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. However, price has fallen below the moving averages to reflect a bit of bearish momentum.

RSI is indicating oversold conditions or that sellers are feeling exhausted, and turning higher could encourage buyers to return. Similarly stochastic looks ready to pull up from oversold levels and reflect a return in bullish momentum.

Bitcoin has had a rough ride in the past few days, owing mostly to a set of negative updates. For one, it has been reported that Goldman Sachs might ditch its plans to offer a bitcoin trading desk. Although this was dismissed as “fake news” by its CFO during a speech, the remarks weren’t enough to restore investor interest.

Reports that ShapeShift is adding registration requirements and that Kraken is planning layoffs and a shutdown in some operations also fueled the bearish fire. Kraken also dismissed these rumors but bitcoin was unable to pull up significantly.

Traders could return their focus to pending bitcoin ETF applications from here, although the sentiment has been dampened recently. Recall that the SEC is also reviewing its earlier decision to reject a few applications but has not specified when the review period would end. A positive decision may be what bulls are hoping to get in order to sustain the anticipated rebound for the year.

The post Bitcoin (BTC) Price Analysis: Closing in on Major Support Zone appeared first on Ethereum World News.

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Bitcoin (BTC) Price Analysis: New Channel Forming!

Bitcoin continues to trend higher even as it sold off from the recent sharp rally. Price is testing support at the bottom of its ascending channel on the 1-hour time frame, and the Fib extension levels show upside targets.

The bottom of the channel lines up with a former resistance level that appears to be adding to its strength as a floor. This is also around the moving averages’ dynamic inflection points, although bitcoin has dipped below these levels slightly.

Still, the 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Then again, the gap between the indicators is narrow enough to suggest that a bearish crossover is also possible.

RSI is making its way out of the oversold area to indicate a return in bullish pressure. Stochastic is also pointing up to reflect that buyers are in control and could push bitcoin back up to the next upside targets. The closest one is the 38.2% extension at the $6,500 mark.

Stronger bullish pressure could take bitcoin up to the mid-channel area of interest near the 50% extension at $6,600 or the 61.8% extension at $6,664.70. The 78.6% extension is near the swing high at $6,800 and the full extension is at the top of the channel past $6,900.

Anticipation for the SEC decision on the ProShares bitcoin ETF application boosted price earlier on, but the rejection led to a swift retreat. The regulator disapproved two ETFs filed by ProShares that would track bitcoin futures contracts, another from GraniteShares, and five leveraged and inverse ETFs from Direxion.

This comes a few weeks after the SEC rejected the applications filed by the Winklevoss twins and ahead of another set of rulings due later in September. Many believe that this rejection is an indication of how their next decisions might turn out.

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Bitcoin (BTC) Price Analysis: Can More Bulls Join In?

Bitcoin bulls have charged past the $6,600 near-term resistance to push price to the $6,900 mark before pulling back. Applying the Fibonacci retracement tool on the latest swing high and low shows where more buyers could be waiting to join in.

In particular, the 61.8% Fibonacci level lines up with the broken resistance and the rising trend line connecting the lows since August 14. This is also just above the dynamic inflection points at the moving averages.

On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse.

However, RSI is already indicating overbought conditions and might be due to turn lower to signal a return in selling pressure. Stochastic hasn’t quite reached overbought territory yet but also looks ready to head south, so bitcoin might follow suit.

The pop higher earlier today is being pinned on anticipation for the SEC ruling on the ProShares bitcoin ETF application on August 23. Unlike the other applications shelved until the end of September, the regulator can no longer extend the ruling deadline on this one as it has been filed in December last year.

Approval could bring even more gains for bitcoin and its peers as this would build anticipation for a similar decision in the other applications. This could also mean more liquidity and increased activity for bitcoin trades. Denial, on the other hand, could force bitcoin to return its recent wins.

Risk sentiment is also a general factor to keep close tabs on as there has been a lot going on in terms of trade talks and geopolitical risks. Turkey appears to have taken the back seat for now and the central bank’s pledge to take action seems to have spurred a bit of calm.

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Bitcoin (BTC) Price Analysis: Inverse Head and Shoulders

Bitcoin could be done with its slide as it forms an inverse head and shoulders pattern on its 1-hour time frame. This is seen as a typical reversal signal, so a break past the neckline could confirm that an uptrend is in the cards.

The neckline is around the $6,500 level and the chart pattern is around $800 tall, which suggests that the resulting breakout could be of the same height. The 100 SMA is crossing above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In addition, the moving averages also appear to be holding as dynamic support levels.

RSI is pointing up to signal that bullish pressure is present while stochastic is also heading higher, so bitcoin could follow suit. However, both oscillators are nearing overbought levels and turning lower could bring selling pressure back in.

Some say that the bounce is merely a short-squeeze from the earlier declines while others say that it was spurred by the pickup in risk appetite. This was seen across the financial markets as US and China are scheduling trade talks for next week, possibly giving enough time to withdraw the latest round of tariffs to take effect by August 23.

Still, the fact that bulls are strongly defending key support levels suggest that a bigger bounce may be in order, and positive catalysts might be needed to sustain any rallies past areas of interest. If those continue to keep gains in check, bitcoin could once again find itself testing those long-term floors around $5,800 to $6,000.

Looking ahead, there are no major catalysts lined up from the cryptocurrency or the US economy. Then again, most of bitcoin’s action is headline-driven or sensitive to overall market sentiment. Also keep in mind that the economic risks in Turkey might also wind up being bullish for bitcoin if the situation worsens.

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Bitcoin (BTC) Price Analysis: Bears Just Won’t Give Up!

Bitcoin has formed lower highs and lower lows to trade inside a descending channel on its 1-hour time frame. Price bounced off the resistance and looks ready to resume the slide to the downside targets marked by the Fib extension tool.

Price is already testing the 50% extension at the mid-channel area of interest and sustained selling pressure could take it down to the 61.8% extension at $6,800. This lines up with a longer-term former resistance level that may still contain some buy orders.

From there, a continued drop could bring bitcoin to the 78.6% extension at $6,700 or the full extension at the channel support around $6,600. A break below these levels could confirm that bitcoin is far from bottoming out.

The 100 SMA is safely below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to persist than to reverse. The short-term moving average is just above the top of the channel, adding an extra ceiling in the event of an upside break.

RSI is still pointing up, though, so buyers could still put up a fight. Similarly, stochastic is heading north so bitcoin might follow suit.

The lack of any major positive updates over the past couple of weeks has rendered bitcoin vulnerable to profit-taking and more sensitive to negative commentary. This has also prompted a lot of naysayers to come out and claim that the bubble is starting to burst.

Still, Wall Street bull Tom Lee noted that bitcoin has been able to reclaim its market share and that this is a positive sign. Fresh confirmation that Goldman Sachs is placing bets on the cryptocurrency industry could also be enough to remind traders that institutional funds are flowing in, likely keeping the industry supported in the longer run.

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Bitcoin (BTC) Price Analysis: Wedge Resistance Holding, Support Next?

Bitcoin appears to be blocked at the top of its daily falling wedge formation.

Bitcoin has formed lower highs and lower lows to create a falling wedge pattern on its daily chart. Price is hitting a roadblock at resistance and might be due to test support once more.

The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. Price also came close to testing the 200 SMA dynamic resistance and is tumbling below the 100 SMA dynamic inflection point.

RSI is also heading south so bitcoin might follow suit while sellers remain in control. Stochastic is also heading lower to indicate the presence of selling pressure. Both oscillators have a bit more room to slide but are nearing oversold levels to signal potential exhaustion among sellers and a possible return in bullish pressure later on.

At the same time, the gap between the moving averages is starting to narrow to reflect slower bearish momentum. An upward crossover could bring buyers in and spark an upside break from the wedge resistance. This chart pattern spans $6,000 to around $12,000 so the resulting uptrend could be of the same height.

Bitcoin has had a rough ride in the past few days since it was bogged down by the HitBTC outage and negative remarks from Krugman. South Korea’s plans to tax cryptocurrency exchanges also weighed on prices. Still, some say that this also marks a much-needed pullback from consecutive weekly gains.

Institutional interest remains strong but probably not enough to make it to the headlines these days. Having the spotlight turn back to these kinds of updates could bring more gains for bitcoin and its fellow cryptocurrencies as funds from institutions could bring more liquidity and stronger volumes, likely drawing retail traders to reopen long positions.

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