- 2018-08-27
Bitcoin (BTC/USD) finished its previous trading week at 6707.
BTC crossed MA line up and down several times and went above MA at the end of the past week. Today it was traded above MA line.
At the beginning of the past week BTC went down and tried support line at 6200. Then it went up to try resistance line at 6900 but retreated the same day. Today BTC’s movement was very weak and slow.
Additional indicator’s lines (Stoch RSI) went up and they began to enter Overbought zone today. So we can expect BTC’s going up on some more distance. But the rise is highly unlikely to be intense.
The price was trying to go up and it looks like a try of Correction. But resistance line at 0.382 (Fib retracement) is still not broken because the upwards movements were rather weak. So BTC can go up to try Resistance level at 6780/6800 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 level the price can go further up to try next levels 7070/7100 (and even come to 7350) . But it is very unlikely because the price has almost entered Overbought zone and it’s upward movement becomes weaker.
If the price goes down it’ll have to break through 6600 and 6420/6400. 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 broke up MA line at the end of the previous week and is traded above the MA line today.
Oscillator’s indicators finally went up and started to enter the Overbought zone.
So if the indicators continue to go up BTC will most likely go up too but not intensely. Indicators can rather often go sideways in the Overbought zone for 1-2 weeks.
There is high probability that the indicators will cross and go down. Then it’ll be a signal to sell.
Additional signal of downwards movement will be when the price breaks down through MA line.
We expect that BTC will continue to go up for some days though not very intensely (Usual Correction).
Then it’ll most likely go down again to try 6600 and 6420/6400. Next support levels are 6000 and 5800 (very strong Support level). If it breaks through 5800 support level the downwards movement can become very intense.
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 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 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.