- 2018-08-20
Bitcoin (BTC/USD) finished its previous trading week at 6485.
BTC was traded below MA line but broke up through it at the end of the past week. Today it’s traded above MA line.
At the beginning of the past week BTC went down intensely and began tried 5850 support line. Then it went up to 6600. Today BTC goes down but very slowly.
Additional indicator’s lines (Stoch RSI) went up and out of the Oversold zone. But they stuck in the middle. And now they seem to be trying to cross again and go down. So if they actually go down we can expect BTC’s going down again. If they continue to go up BTC will do it too.
The price was trying to go up and it looks like a try of Correction. But the upwards movement was rather weak. So BTC can go up to try Resistance level at 6590/6600 again. If it breaks through it is likely that BTC will go up to try resistance level at 6890/6900. In case of breaking through that the price can go further up to try next levels 7150.
If the price continues to go down the next strong Support levels are 6000 and 5800.
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 looks like narrowing of corridor now (Triangle). If the price breaks down out of it this will mean distinct downtrend. And if it goes up we can expect either its return to sideways trend or even beginning of uptrend.
BTC was traded below MA line the previous 2 weeks. It broke up at the end of the previous week and is still traded above the MA line today.
Oscillator’s indicators finally went up and out of the Oversold zone but they seem to stop in the middle.
So if the indicators continue to go up BTC will most likely go up too.
There is still high probability that they’ll reverse and go down again.
Additional signal of downwards movement will be when the price breaks down through MA line.
We expect that BTC will continue to go up though not very intensely (Usual Correction).
But it can also try to go down again to try 6000 and even 5800 (very strong Support level). If it breaks through 5800 support level the downwards movement can be rather intense.
The market’s sideways movement has been not intense for about last 2 weeks. So it can explode up or down 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 rather often nowadays. 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 is 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 is shown on the screenshots for the purpose of not overloading the chart’s pics with technical details and indicators’ lines.