The Bitcoin-to-dollar exchange rate on Wednesday traded at 6435-fiat after jumping 1.76 percent from the previous day’s low.
The pair is now reversing its upside action to extend the prevailing sideways bias. Selling pressure got renewed near the interim resistance level at 6450-fiat and BTC/USD gyrated above 6620-fiat as a result. The pair is now looking to the US Securities and Exchange Commission’s latest comments on VanEck and SolidX ETF for extended bullish movements. Meanwhile, the US Dollar Index is losing momentum after establishing fresh tops at 96.50-fiat. The overall DXY sentiment, however, remains bullish that could reflect in Bitcoin and other dollar-enabled markets down the road.
The latest upside action has broken above the upper trendline of the near-term triangle formation. The strong fundamentals could excuse false breakout theories, bringing 6500-fiat in-sight as an achievable long target. The downside is now capped by three moving average indicators – 50H, 100H, and 200H – which could gyrate BTC/USD back towards the intraday high levels. RSI, the momentum indicator, is showing signs of reversal above 55, hinting traders could be accumulating more bitcoins on ETF fundamentals. A similar action could be seen in the Stochastic Oscillator graph, which is in a neutral area but with its head towards the north. For what it may seem, BTC/USD has established a bullish bias – though, near-term.
We are on the verge of retesting our interim resistance level near 6450-fiat which, per our previous analysis, was our intrarange long target. We did manage to squeeze out a decent profit off our upside position, and our short towards the interim support at 6360-fiat is still open. However, with the fundamental dynamics changing, we believe we’ll have to bear a small loss should the pullback from resistance does not extend towards the support.
Our current intraday analysis, therefore, has an intermediate support level at 6392-fiat while we still keep 6360-fiat in sight. At the same time, a near-term ascending trendline is drawn to offer us hints of a potential near-term breakdown and downside caps.
That said, we are first waiting to put our breakout strategy in place. A break above resistance would have us open a long position towards 6495-fiat, our primary upside target. We’ll maintain a stop loss order just 3-pips below the entry level to minimize our risks.
A pullback from resistance would have us put a short towards 6392-fiat. A further break, and we’ll enter a similar position towards 6360-fiat. On both the shorts, a stop loss order just 2-pips above the entry position would define our risk management strategy.
Featured Image from Shutterstock. Charts from TradingView.
Last modified (UTC): October 24, 2018 18:33