BTC Analysis and Forecast (Oct 2nd, 2018): Bitcoin hesitates to get out of sideway area

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During previous trading session (Oct 1st), Bitcoin is still wandering between two barriers $6684 and $6551 all day long with a fake breakout through the blue trendline

Currently, Bitcoin still lingers above this fragile uptrend, though this is not a strong support for Bitcoin’s rally.

On chart H4, Bitcoin and ADX indicator are giving a hint of bullish hidden divergence when the price is creating higher lows and ADX is forming lower lows. Although, ADX value remains quite low under 20, this is a small positive signal for Bitcoin. Traders should be patient waiting for more engines from fundamental factors putting Bitcoin through Fibonacci 23.6 ($6745).

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BTCUSD price chart H4 Oct 02, 2018

On chart H1, BTCUSD keeps sideway in a narrow range from Sep 30 until now. Bollinger Bands is squeezing as the price has tried to test both the upper band and lower band in vain several times. No set of candlesticks managed to escape the Band. Currently (13:58 GMT+7) the pair is being traded at $6599 heading to the middle SME. There is a high chance that BTCUSD keeps swinging among the bands until the market sentiment is leveraged by some positive news.

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BTCUSD price chart H1 Oct 02, 2018

Suggestion:

  • Upward tendency in H1
  • Weakening uptrend in H4
  • Positive signal for rally but not enough to confirm a solid uptrend

If the next several candlesticks can close above the Upper Band, uptrend is established. The next target is Fibonacci 38.2 ($7365).

In the worst scenario, traders are recommended to stand on the sidelines or go short for thin profit right above the Upper Band with SL and TP at $6551 and $6580. This may be suitable for scalpers during market sideway.

Written by nami.today

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