Bitcoin Price Hedge Pledge

October 29, 2015 17:53 UTC

Bitcoin price is advancing in “stupendous” mode as the Fed delays a rate hike, once again. Uncertainty and US dollar hedging is the name of the game and bitcoin has received a go-ahead to advance, uninterrupted, for two months.

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Bitcoin Price Analysis

Time of analysis: 15h29 UTC

Bitstamp 4-Hour Chart

From the analysis pages of, earlier today:

Amazing price action in the 4-hour Bitstamp chart as price pushes the indicators to the extreme in what looks like its final wave to the upside.

“Final” does not mean the “end of trend”, however – the Fed’s delay in hiking interest rates means that bitcoin’s role as a US dollar hedge is sealed until at least December.

Although the largest players will remain long bitcoin, the moment where every buyer has bought is approaching, as is evident of the distance of price from its 200-period moving average
(red). Such over-bought conditions, typically, resolve via a sell-off that returns price to the 200MA and the bitcoin bulls may choose to participate since they will have the opportunity to buy in lower and then hike trend, again, toward $400 and beyond.

Gargantua, the Interstellar edition.

Despite almost constant profit taking, price is advancing almost vertically and the sense is that this rocket will go straight past the moon and to Gargantua. After a correction, of course.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. – Fed Funds Rate statement


The upside is wide open. Historic support and resistance levels will certainly have an effect on price: $500, $680 and so forth, but if the market wants to advance bitcoin, it has two months (until the next Fed rates statement) to do so. At the moment of the much anticipated Fed rates “lift-off”, the US dollar will become the rally instrument of choice. There is not much to say, other than “buy the dips”. The 200MA is the critical yardstick.

Bitfinex orderbook depth and Buy/Sell Volume:

Click here for the CCN.LA interactive bitcoin price chart.

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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock and Interstellar, Warner Bros.

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