Bitcoin on Friday witnessed as much as 1.3 percent gains against the US Dollar from the pair’s previous low at 6293-fiat.
BTC/USD is in a minor pullback scenario ever since and is trading at 6364-fiat at the time of this writing. In contrast to the Asian session, the European hours today witnessed lower volume. It pushed the pair into a narrow trading range altogether, leaving little-to-no room for day traders to find intraday opportunities.
The US Dollar Index (DXY), on the other hand, came under some selling pressure, now retesting a key support level at 96-fiat. The uncertainty comes from the US-China’s potential trade talks that are to happen at the G20 gathering in Argentina at the end of the month. The index was any way trading higher during the first half of the week owing to negative sentiments in the European markets stemmed from political uncertainties in Germany.
There was a brief attempt to invalidate a key bearish trendline depicted in blue in the chart above. But BTC/USD pullback validated a mildly strong selling sentiment near that area. As of now, the bulls are not giving up and are attempting to break above the said trendline, which could allow the pair to gain further momentum towards 6421-fiat, the next upside target for day traders. It should be possible once BTC/USD moves above its 100-hour simple moving average, with a run towards the 200-hour moving average in view – which would somewhat coincide with 6421-fiat.
The RSI momentum indicator, meanwhile, has rocketed inside a buying sentiment region. The Stoch, at the same time, is already overbought and is sighting lower correction.
Overall, the interim bias of the bitcoin market is bullish.
The range we are watching today has 6421-fiat serving as interim resistance and 6329-fiat as interim support. BTC/USD should first break above the blue descending trendline, which would enable us to enter a long position towards 6421-fiat. As we do, we will also maintain a stop loss order just 4-pips below the entry point to define our risk management perspective.
A pullback scenario from below or above the blue trendline, coupled with an increase in volume, would have us enter a short position towards 6295-fiat. In this position, a stop loss order just 3-pips above the entry point will minimize our losses should the price action reverse.
Featured image from Shutterstock.
Last modified (UTC): November 2, 2018 19:05