CoinNess Analysis: Trading Sideways Will Still Be BTC’s Main Pattern In The Short Term

CoinNess.com
Nov 5 · 2 min read

A 2% rising yesterday (Nov 4) doesn’t change BTC’s overall trend, and trading sideways will still be its main pattern in the short term. Judging from its one-hour changes, BTC has been trading in a tight range. The sudden spike at 20:00 (UTC) on Nov 5 did break some small resistance areas which is a strong signal for the short term. But whether BTC will embrace a fresh round of rising will be determined by whether its trading volume will keep expanding for the short term.

For traders that focus on BTC’s daily trends, BTC is still stuck in a resistance area that is located between the sloping trending line and the horizontal neckline, making its trend unclear for the time being. So the advice for them is don’t enter the market until BTC breaks the $10,400 level. For those short-term intraday traders, now is a good opportunity to break the falling-back trend. We believe there is still space for BTC’s rising, but such traders are recommended to stop earnings when BTC’s price enters the red frame in the picture in case it falls back to lower levels.

Because of the friendly signal released by China’s regulations, BTC’s trading volume is jumping back up to higher levels. As trading volume is closely correlated with market sentiment, the recent development with this index may suggest that fresh capitals are entering the market. However, this is not necessarily a signal that you are encouraged to buy BTC right now. Because trading volume only suggests new movements of capitals employed in the market, and a potential trend that may appear in the short term doesn’t mean BTC will definitely go up in the short term.

CoinNess.com

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