Weekly Technical Report in Crypto-Currencies, 1st Oct 2019

BTC USD (CMP: $8409)

Diagram 1: Daily Chart of BTC with Bollinger Band

After the infamous fall of last week, Bitcoin is now trying to consolidate in the range of 8100–8500 regions. The daily chart above shows a spurt of rise in volatility (as measured by Bollinger Band width) in recent past and a subsequent downward penetration of the lower channel line. It implies, although trends continue to remain downward, in short term it might have reached a state of being oversold and minor pull back may not be ruled out in near future. At the same time, we also note an array of resistances from 8900 till 9400 regions and short term pull backs are likely to meet supply at these levels. As a matter of fact, we may assert that the primary trend remains downward below these overhung resistances.

The horizontal line shown in diagram 1 above marks an old support region at 7550 levels that held prices several times in May & June and that level makes the intermediate target for the present downtrend in BTC.

Ether USD (CMP: $181.2)

Diagram 2: Ether Daily chart

We saw nearly 4% rise in Ether yesterday, but that too didn’t change the larger picture in this battered counter.

Overall downtrend is pretty clear in the lower top formation of daily chart in Diagram 2 & as even rise of September was only short lived. This week’s gain again resembles that of a minor pull back & presents a selling opportunity. There is a feeble support at 170 odd levels & that could well be a shot term target for Ether, however, like any other downtrend we are not expecting this support to hold for a long time.