BitcoinShort
01.10.2019 - BTCUSD Technical analysis
Hello everyone,
Welcome to October! For the past week we had quite a movement in BTCUSD price. As I have mentioned in my previous analysis, failure to remain in 10k led us to support zone at $9,450 - $9,000 and failure to keep that range resulted in breaking the descending triangle, therefore providing some bearish market sentiment. As we sliced through the 9k support, we ended up at $8,700 for some time and then dipped even further toward 8k throughout the time breaking down the support to $7,700.
Interesting observation, at the end each month and the beginning of the following month, the BTCUSD price tends to increase after a sellout. Such behavior has been happening since July 19. Even though current recovery is not the major one we still had two green daily candles.
Moving on to the indicators. Daily stoch RSI is demonstrating some recovery (which kind of supports the beginning of the month recovery observation), but buying volumes are still not as impressive as a sellout volumes, therefore there is simply not enough petrol to push the price further up at aggressive pace. 2H, 4H and 6H stoch RSI are in overbought areas, so we could expect some selling volumes appearing in the short term. VPVR indicates major interest at 8k, which is acting as a support right now. The 50 days Moving Average took direction to the south and is aiming to cross the 200 days Moving Average, which could result in Death cross, but till then there is still time to change direction.
Zooming out. Quite a lot a CT analysts and traders were looking at $7,420 level, which acted as resistance since September 18 until May 19. To be honest, why wouldn’t they look at that level. When the price was dropping, I was expecting it to dip to that level and bounce, but psychology of round numbers was stronger, so current support is 8k. Beyond $7,420 we have the area of support ranging between $6,440 and 6k, which is a historical level from 2018. In addition, VPVR indicates strong historical level of trading interest at $6440. Failure to keep $7,420 should lead the price directly to $6,440 because there are no any significant levels in between.
To sum up, I personally do not expect the significant leg up in the nearest future and expecting a further price decline to the abovementioned levels providing more good opportunities to buy low. As for the nearest future it is quite important to see how daily will close. As I have mentioned there is not enough buying volumes and I could see the market hesitation at the time of writing this analysis as we are getting daily spinning top candle.
I would like to mention that this is not a financial advise but rather an observation of the market. Trade carefully and at own risk.
All the best! Trade safe!
Welcome to October! For the past week we had quite a movement in BTCUSD price. As I have mentioned in my previous analysis, failure to remain in 10k led us to support zone at $9,450 - $9,000 and failure to keep that range resulted in breaking the descending triangle, therefore providing some bearish market sentiment. As we sliced through the 9k support, we ended up at $8,700 for some time and then dipped even further toward 8k throughout the time breaking down the support to $7,700.
Interesting observation, at the end each month and the beginning of the following month, the BTCUSD price tends to increase after a sellout. Such behavior has been happening since July 19. Even though current recovery is not the major one we still had two green daily candles.
Moving on to the indicators. Daily stoch RSI is demonstrating some recovery (which kind of supports the beginning of the month recovery observation), but buying volumes are still not as impressive as a sellout volumes, therefore there is simply not enough petrol to push the price further up at aggressive pace. 2H, 4H and 6H stoch RSI are in overbought areas, so we could expect some selling volumes appearing in the short term. VPVR indicates major interest at 8k, which is acting as a support right now. The 50 days Moving Average took direction to the south and is aiming to cross the 200 days Moving Average, which could result in Death cross, but till then there is still time to change direction.
Zooming out. Quite a lot a CT analysts and traders were looking at $7,420 level, which acted as resistance since September 18 until May 19. To be honest, why wouldn’t they look at that level. When the price was dropping, I was expecting it to dip to that level and bounce, but psychology of round numbers was stronger, so current support is 8k. Beyond $7,420 we have the area of support ranging between $6,440 and 6k, which is a historical level from 2018. In addition, VPVR indicates strong historical level of trading interest at $6440. Failure to keep $7,420 should lead the price directly to $6,440 because there are no any significant levels in between.
To sum up, I personally do not expect the significant leg up in the nearest future and expecting a further price decline to the abovementioned levels providing more good opportunities to buy low. As for the nearest future it is quite important to see how daily will close. As I have mentioned there is not enough buying volumes and I could see the market hesitation at the time of writing this analysis as we are getting daily spinning top candle.
I would like to mention that this is not a financial advise but rather an observation of the market. Trade carefully and at own risk.
All the best! Trade safe!
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