- 2018-09-03
Bitcoin (BTC/USD) finished its previous trading week at 7300.
BTC was traded above MA line the whole week and now it goes on moving above.
At the beginning of the past week BTC went up and broke through resistance lines at 6900 and 7050. It tried 7300 at the end of the week but retreated the same day. Today BTC’s movement was very weak and it tries to break up through 7300 level.
Additional indicator’s lines (Stoch RSI) were going sideways in the Overbought zone for the hole week and they still move there.
The price went through the resistance lines at 0.382 and 0.5 (Fib retracement). BTC tried to break through 0.618 (7355) line and it looks like it will go on trying it again. So if BTC breaks up through it it can go up to try 7480/7500 and 7700/7710 next.
But the price is in Overbought zone and it’s upward movement becomes weaker. So it is also highly possible that we will see downwards movement soon.
If the price goes down it’ll have to break through 7050, 6900 and 6590/6600 support levels.
On larger timescale (week) BTC seemed to begin a downtrend. There was new maximum (lower than previous) but BTC hasn’t drawn new minimum yet. So it still looks that we have Triangle. If the price breaks down out of it this will mean distinct downtrend. And if it goes up we can expect sideways trend or beginning of uptrend.
BTC was traded above MA line the previous week and is still traded above the MA line today.
Oscillator’s indicators entered the Overbought zone and were going sideways in it for the whole previous week. They still continue to go in the Overbought zone today.
Indicators rather often go sideways in the Overbought zone for 1-2 weeks.
So when they cross and go down BTC will most probably go down too. It is usually a signal to sell.
BUT sometimes it can be also a false signal because we can have a change to trend soon (Oscillators work normally during the Flat but they show false signals during trends).
Additional signal of downwards movement will be when the price breaks down through MA line.
We expect that BTC can continue to go up for some days though not very intensely.
Then it’ll most likely go down again to try 7050/7100 and 6900. Next support levels is 6590/6600(strong Support level).
The market’s sideways movement has been not intense for about last 2 weeks. So it can explode up or down out of the Triangle very soon.
Don’t forget to put proper stop-losses according to your risk management!
NOTE. There is some sort of unpredictability of the market now. Indicators’ signals miss the real movement of price sometimes. The volumes of bought/sold BTC don’t correlate with the price’s moving. Oscillator’s indicators can be in Overbought/Oversold zone for a week or even more.
There can often be some plot to such a situation. If we notice such unusual (unpredictable) activity we’ll give its analysis and conclusions in our extra posts.
*predictions are made on the basis of several indicators. Only 1-2 indicators are shown on the screenshots for the purpose of not overloading the chart’s pics with technical details and indicators’ lines.