Bitcoin Technical Analysis – 12th October
Since last week’s analysis, Bitcoin broke its boring range and came back above $11,000
What conclusions should we take, and do we know where Bitcoin is headed?
Find it out in this week’s analysis!
Bitcoin Weekly Chart Analysis
The tools used for this analysis are the following:
- Support and Resistance Levels
- Bollinger Bands
- VPVR
You can learn more about how to use those indicators in this Guide.
Bitcoin bounced above the middle Bollinger Bands and is pursuing its uptrend on a weekly level. The VPVR analysis shows a High Volume Node below 10k, which corresponds to the Weekly Demand level. We can notice that BTC reached a weekly resistance level sitting at $11,500.
As long as this trend continues, we should remain bullish. However, a few indicators can be concerning. We still did not fill that CME gap at $9,600, and the volume seems to be decreasing as we go up.
I believe we will revisit the $8,000 area in the long term, but this doesn’t seem to be planned for this week.
Bitcoin Daily Chart Analysis
The tools used for this analysis are the following:
- Support and Resistance Levels
- EMA 200 and MA50
As expected last week, Bitcoin followed the ascending triangle we have been drawing.
Bitcoin broke the MA50 and climbed above the massive Resistance that was sitting on the $11,100 level.
I am now expecting Bitcoin to retrace and retest this Support/Resistance flip before moving to the last ATH in date, $12,200.
Bitcoin Hourly Chart Analysis
In terms of the hourly chart, Bitcoin was quite interesting this week.
As you can see from this chart, the price action was clear! Many trendlines could be drawn and used for breakout trades. Bitcoin bullish price action powered it above the major $11,100 resistance while breaking 2 descending trendlines.
Next week, before taking any longs, be careful about the current CME gap sitting at $11,200.
Bitcoin Weekly News
— Thai central bank issues $1.6B in government bonds on IBM blockchain – link
— SEC charges John McAfee with fraudulently touting ICOs – link
— Bitcoin derivatives exchange Bitnomial raises $11.6 million – link
— Japanese financial giant SBI acquires TaoTao crypto exchange – link
— BitMEX founders Arthur Hayes and Samuel Reed step down following SEC changes’ – link
— 60 Coinbase employees take exit package over the firm’s ‘apolitical’ stance – link
— Dutch central bank gives first approval to digital asset exchange – link
— Binance overtakes Huobi, OKEx as biggest derivatives exchange – link
— Pelosi rejects White House’s $1.8T stimulus offer – link
— UK FCA bans cryptocurrency derivatives starting January 2021 – link
