Bitcoin price has been rather stable during the past week, as it ranged between $6,500 and $6,600 during most of the week’s trading sessions. Over the past 4 days, Bitcoin price surged by around 1%. A week high of $6,626 was scored last Wednesday, and a week low of $6,462 was recorded last Thursday. Even though last week’s charts showed some significant bullish signals, this week price was mainly moving sideways with reversal of some of the bullish indicators that were shown by technical analysis of last week’s charts. The rise in BTC price was associated with a 0.2% rise in ether’s price, and a 0.4% rise in the price of ripple.
Bitcoin price and the news:
The Intercontinental Exchange’s (ICE) Bakkt crypto platform will most probably get the green light from US regulators to launch a physically delivered Bitcoin futures asset next week, as reported by an anonymous source last Thursday.
The S&P 500 dropped by around 7% this month. Whether or not this would shift more retail investors to the crypto economy is yet to be discovered during the upcoming few weeks. The DJIA also dropped by 3% this week.
Earlier this month, uncertainty around the US stock market threw its shades on cryptocurrency markets as the DJIA fell by more than 1,300 points in 2 days, which represents its biggest sell-off since February. This was associated with a 6% drop in bitcoin price, as the total cryptocurrency market capital lost $18 billion of its value early in October.
Descending triangle pattern on the 4 hour BTCUSD chart:
Let’s examine the 4 hour BTCUSD chart from Bitfinex, while plotting the Williams Alligator indicator, and the MACD indicator, as shown on the below chart. We can note the following:
– Bitcoin price has been moving sideways during most of the week’s trading sessions, ranging between $6,462 and $6,626. Price has been safely above the support level around $6,400 during all of the week’s trading sessions. The next significant resistance level lies around the $6,800 price level.
– A “descending triangle” pattern is now evident on the chart, as formed by declining highs forming since October 15, and a relatively stable price lows evident since October 18. A breakout of this descending triangle pattern is likely to occur towards the upside, yet this is not supported by the indicators and oscillators on the 4 hour chart and the 1 day chart as we will see later.
– The Williams Alligator’s SMAs are exhibiting a bearish alignment. The red SMA (teeth) is between the green SMA (lips) from above and the blue SMA (jaw) from below. A bullish move is unlikely to occur unless this alignment of the SMAs are reversed, so that the alligator would open its mouth and start eating in the upside direction.
– The MACD indicator is bearish as the red signal line is above the blue MACD line. Also, the value of the MACD is in the negative territory which also represents another bearish signal.
– The RSI value is 36, so the market has the potential to rise as price is more towards the oversold side.
Red Ichimoku Cloud (Bearish) on the 1 day BTCUSD chart:
Let’s examine the 1 day BTCUSD chart from Bitfinex, while plotting the Ichimoku Cloud and the MACD indicator, as shown on the below chart. We can note the following:
Note: we will keep the Fibonacci retracements we extended during last week’s bitcoin price analysis.
– Bitcoin price is well supported above the 76.4% Fibonacci retracement ($6,400) which has been a price level that has not been breached since October 10. A drop below this price level can lead to a decline towards $5,800.
– The Ichimoku Cloud has turned into the red color, which means that we are most likely to see a bearish market during the upcoming week. This is also confirmed by other two bearish signals – the Conversion Line is below the Base Line, and price candlesticks are below the Ichimoku Cloud.
– The MACD indicator is also bearish with the red signal line above the blue MACD line, even though its value is in the positive territory.
Bitcoin price was moving sideways during most of last week’s trading sessions, even though it surged by around 1%. Technical analysis of the charts denotes that we are most likely to witness a bearish market during the upcoming week, yet we are unlikely to see price drop below $6,400. A move towards the upside is likely to be resisted near $6,800.