BITCOIN: Short Term Analysis - 1 Hour (Nov. 1)

1 nov. 2019

Bitcoin is currently trading in an immensely tight range, reaching our APEX in this triangle. It's extremely difficult to predict which way this will go; however, it's important to note a few key factors before taking a position. There is a slight bearish probability for Bitcoin for the short term, as we are currently being constantly rejected by our triangle, with many attempts only to be pushed down by the bears.

It is currently about a 60% Bearish, and 40% Bullish scenario, which is very even if you ask us. Let's take a look at a few of the key factors.

1. Bitcoin is currently being heavily sandwiched in between our 200 Moving Average (MA) and the major 10, 20, 50, and 100 MAs. This is indicating that Bitcoin is coiling up for the next move down or up. Whichever way it goes, is completely up to you. However, the fact that we are trading below those smaller moving averages, it may want to at least test the 200MA as indicated by the pink.

2. Bitcoin is in a giant triangle, once again. Statistically, Bitcoin has usually broken below most of these formations. We just witnessed one in the 10-13K range. Will this repeat? That is what the bears might be eyeing.

3. In terms of our Fib Retracement levels (from closed candle to closed candle), we are seeing a clear demand at our .382 fib level on the 1 hour. But here is the key, the more it's tested, the higher chance of it breaking.

4. Bitcoin has done a 40% pump, the biggest in a single day rally. This of course calls for a recall, but how far? That is a question that the day traders are contemplating on. Many are currently cautious waiting on the sidelines. The 618 Fib is something that the bears are currently eyeing. But since that is well below our 200MA on the hourly, it may indicate that it will be bearish. But this is a double edged sword.

Whatever direction it goes, we are still bullish on the long term!

What side will you take? Please comment below.