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Bitcoin Price Analysis Oct.7: A possible move ahead?

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The long-term consolidation of Bitcoin from the past weeks is coming to an end soon? Two significant signs indicate on a coming up movement: Bollinger bands are very tight, along with 200 and 50 days moving average lines that have recently crossed each other.

Over the weekend Bitcoin had re-tested the upper line of the “channel” reaching a high of $6740, but didn’t have enough buying power to stay there.

Now what?

  • Bitcoin is on top the 50 days moving average (the purple line on the chart), but still facing the tough resistance zone of $6600.
  • Volume is still decreasing over the last days (maybe typically to weekends), this supports the option of a significant Bitcoin move ahead.
  • From the bull side: Resistance area is at $6720 – $6800: the $6800 double top, along with long-term descending trend-line at around $6720 and upper trend-line of the ascending channel at $6760. This creates a strong resistance area around the above.
  • RSI levels are at their low levels; Stochastic RSI had crossed at the low RSI levels. Hence the market is in good shape to move up according to RSI.
  • Bitcoin short positions on BitFinex didn’t change much over the past two days. 

BTC/USD BitFinex 4 Hours chart

BTC OCt7Cryptocurrency charts by TradingView. Technical analysis tools by Coinigy.

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