Bitcoin Bulls Pushing Prices Against Strong Headwinds: Market Analysis, Sep. 13
There may be strong winds impacting both sides of the Pacific as a result of Hurricane Florence and super typhoon Mangkhut, but the cryptocurrency markets are facing headwinds of their own. The SEC’s decision to ban two cryptocurrency-related products from being traded on the U.S. markets added to an already depressed market mood. The cryptocurrency market is having a pretty difficult week, even though Thursday morning seems to have brought a little relief to the market bulls.
Here is the outlook for the rest of the week.
BTC/USD
BTC/USD’s bulls found themselves in dire straits as they found it very difficult to keep upside momentum going. Prices were range bound for much of Tuesday and Wednesday, oscillating between the $6,190 floor and the $6,300 ceiling. For range traders, this would have presented a wonderful opportunity to buy and support and sell on resistance, using the oversold/overbought indications from oscillators such as the RSI or momentum indicator. However, Wednesday evening saw prices push beyond the boundaries of this range to register more upside recovery.
The expectation on the long-term chart is for prices to continue the same price movements that have occurred for much of 2018; rally from the long-term support line and dip from the descending resistance line. This will continue for some time. Right now, the weekly candle has evolved into a pinbar. If the weekly candle stays this way, this is expected to provide more impetus for further upside rally going into the next week. However, this rally has been relatively slow compared to the previous two rally moves from the support line, and this does not seem to be very good news for bulls expecting more significant rallies.
The daily chart shows that prices have started a very slow rally from the medium-term support line (shown in blue). This line continues to be the reference point for medium-term bullish price movements on BTC/USD. The next medium-term resistance to upside movement is within sight at the $6,800 mark. If this resistance level holds, then price would find itself locked in a symmetrical triangle. There would be some tests of this resistance area and if the bulls are strong enough, there may be a possible upside break of the red resistance line, allowing BTC/USD to attain…
Full analysis here.
