Bitcoin ends week at nearly 3-year high

Bitcoin ends week at nearly 3-year high

Bitcoin & Altcoin Update – Buy The Dip Or Heading Lower?


Bitcoin ends week at nearly 3-year high

  • Bitcoin closed the week at its highest level since January 2018.

  • Long-term indicators remain bullish, although short-term indicators are bearish.

  • BTC is likely trading within a short-term upward parallel channel.

Bitcoin ends week at nearly 3-year high

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At the end of the week from October 19 to October 26, Bitcoin closed above $ 13,000. The long-term trend remains bullish, although weakening is possible in the near future.

Bitcoin ends week at nearly 3-year high

The further direction of price movement in the short term will depend on whether the pair succeeds in making a bullish or bearish breakout from the parallel channel..

Bullish close of the week

At the end of the week from October 19 to October 26, the Bitcoin (BTC) rate formed a bullish engulfing candlestick with a body in the amount of 13.5% of the stroke amplitude. Weekly close at $ 13,039 is the highest since January 2018.

The cryptocurrency continues to trade near the $ 13,500- $ 14,000 long-term resistance formed by the July 2019 peak highs. At the same time, the bulls have already broken through the resistance area of ​​$ 11,800 (weekly close levels since February 2018 are indicated by the dotted line on the chart).

In this regard, it is possible that Bitcoin has already made a clean breakout of an important resistance level, and this version will be supported in the event of a steady rise in the price above $ 13,500.

It is noteworthy that as a result of the last bullish move, the RSI did not start giving signals of bearish divergence. The Stochastic Oscillator is still growing, so there are no signs of weakening on the weekly timeframe.

Schedule BTC. Source: TradingView

On the daily chart, the price formed a bullish engulfing candle on October 21 and has been strengthening since then. Although a small bearish candle appeared on the timeframe on October 25, we cannot speak of clear signs of weakening.

MACD, RSI and Stochastic Oscillator are growing and showing no signs of bearish divergence.

Schedule BTC. Source: TradingView

Short term weakening

On the shorter – 6- and 2-hour – timeframes, meanwhile, the first signs of weakness began to appear.

The RSI started signaling bearish divergence, and the price formed a shooting star candlestick pattern.

These bearish signs may signal an early correction for the price. In this case, the nearest support will meet the pair at $ 12,300 and $ 12,040 (Fibo levels 0.5-0.618 of the correction of the last rise). In the area of ​​the last level, there is also an area of ​​former resistance, which can now become support.

Schedule BTC. Source: TradingView

Bitcoin ends week at nearly 3-year high

A parallel ascending channel can be distinguished on the 2-hour chart. At the time of writing the analysis, Bitcoin was forming a “hammer” candlestick pattern and moving above the median line of this channel.

Further short-term dynamics of BTC can be determined by the direction of the price breakout from this channel. A bearish breakout can send the market to the support levels we indicated earlier. Bullish Breakout May Retest Long Term Resistance Area $ 13,500- $ 14,000.

The bearish scenario seems to us a little more likely now, given the weakening of the price on the short and medium-term timeframes. However, the long-term trend remains bullish.

Schedule BTC. Source: TradingView

Thus, the bitcoin rate remains in line with the bullish trend, but in the near future it may decline and only after that resume growth.

You can read the previous Bitcoin forecast here.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.


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