The bitcoin price continues to trade sideways on Monday after a stable showing during the weekend on the daily charts.
The bitcoin-to-dollar exchange rate is trading at 6398-fiat at the time of writing, 0.85 percent lower than its Sunday high. The pair has found a decent support area in 6350-6400-fiat zone. But, it does not signal enough buying sentiment to break above the giant descending trendline. BTC/USD also formed another Doji on Sunday, confirming an equilibrium between bulls and bears. Frankly, the market is in a long-term bearish bias, so any of these overlong bias conflicts in near-term could intensify its previous selling sentiment.
A reversal from here on daily charts could put BTC/USD towards the direction of the well-marketed bottom near 6000-fiat. There could be accumulation, as evidenced by historical price action. And the pair might take another shot at the descending trendline above. Nevertheless, BTC/USD is consolidating inside a triangle range that is narrowing every day, suggesting that breakout/breakdown action would be too imminent.
A breakout from here, meanwhile, could put the pair on a path towards the 100H moving average, while still confirming a bull trap scenario discussed in one of our previous analysis. Long story short, the market would need a mad bull run, maybe towards $10,000 to even confirm a stable medium-term bullish bias.
We’ll focus on our day trading, in the meantime, to try to make out the maximum profits we can get out of the intraday price action.
We are inside the last leg of our Fibonacci retracement graph drawn from 6151-low to 6479-high. We are now targeting 6354-fiat as our interim support. The resistance, at the same time, is towards 6479-6500 area. We are also expecting an early pullback action from the descending trendline in purple.
To begin with, we have already entered a short position towards 6354-fiat after a close below the intraday high near 6453-fiat while maintaining a stop loss near 6457-fiat. Simultaneously, a pullback action coupled with an increase in volume anywhere above the support area and near-term ascending trendline in saffron would have us open a long position towards the descending trendline. A further break, and we’ll put a similar position towards interim resistance. On both, a stop loss somewhere 4-pips below the entry position would define our risk management perspective.
Meanwhile, a breakdown action below support area would us enter a short position towards 6315-fiat. A stop-loss trade 3-pips above the entry position would minimize our losses should there be a price action reversal.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: October 22, 2018 20:35 UTC