The 1-day range for BTC/USD is $6370.2 – $6516.2 — a sign that BTC has broken through its squeeze zone of $6400; where it had started to consolidate at the beginning of the weekend. The price squeezed UP past $6500, dropping back after a small correction and laying around $6450 now.
BTC’s bump up had a ripple effect (no pun intended) on the market and sent alts up 5% or so, losing some dominance. Alts may correct further than BTC as the week starts on Monday, but technicals still don’t have BTC strong enough to move prices toward $7000 quite yet.
Below we’ll examine Bitcoin Price news and technical analysis.
Bitcoin Price Headlines
- “Williams %R, a technical analysis oscillator that demonstrates oversold or overbought conditions of an asset, is demonstrating highly oversold conditions for Bitcoin.”
- “Bitcoin investors could face a fresh round of intense selling pressure as a collapsed Japanese cryptocurrency exchange is forced to pay out coins worth $1bn (£765m), experts warn.”
- “Although the collective value of all crypto markets is only a tad above its year-to-date low, institutions still seem poised to tackle digital assets head on, with an array of Wall Street giants making meaningful moves throughout the past week.”
BTC/USD Trading Technicals
The technicals for Bitcoin look like the beginning of August all over again—with nearly every signal at the SELL stage. This includes short and long-term oscillators and moving averages—all of which point to an oversold and overvalued asset. Based on these, the technical signal is overwhelmingly on the SELL side.
BTC/USD Trading Charts
Our first chart shows BTC hitting a ceiling at $6580 and bouncing off a support just under $6400. In the chart’s authors words: “Jumping off charts from two days ago. We were looking to see how the bulls rebounded from the top at $6580 to the drop down to $6378. I stated if the bulls formed a lower high compared to $6580, I’d then be watching for a lower low compared to $6378. This is exactly what happened. Bulls tried to break $6580 and fell $15 short with a lower high being set at $6565.”
This second chart seems the same resistance level near $6615 or so; however, this author sees further support levels that can keep propping BTC’s price up; showing a LONG play for BTC.
Bitcoin will need some positive news—which it’s getting a minor dose of with some mainstream publicitiy—to see a recovery. At this point, though, it is withstanding the crash of altcoins, particularly Ethereum and remaining a port in the storm that is the bear market. Still, how long can BTC handle the selling and shorting pressures? Analysis has the coin going down to the $6250 or $5900 area, which may happen before it can see any bounce back to $7000.
Eric is a cryptocurrency writer and editor. He has written on emerging technologies for over seven years and has accrued over 2 million page views. He also runs the paid Coin Agora community. He is currently working on his first novel, which involves a cryptocurrency start-up.