BTC Analysis and Forecast (Oct 3rd, 2018): lost the ground, opening for downtrend

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Bitcoin had fail in attracting buyers to consolidate for weakening uptrend, $6138 will be the next support level

Bitcoin has officially accepted in failure in protecting delicate upward trendline when piercing through the support level at $6540.

Currently, BTCUSD is trading at $6543, declining by 1.85% compared to the opening price of today session. The overall cryptocurrency market is covered firmly in red while only Monero (XMR) and Binance coin (BNB) have escaped the bear trap.

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BTCUSD price chart H4 Oct 3, 2018

Downtrend is believed to continue after recent Bitcoin sideway. The Average Directional Index (ADX) measuring the trend momentum is edging higher though remains low at 37 point. Downward pressure is not significantly overwhelming the bull. In the context of low trading volume recent days, the bear utilized this chance to defeat the bull and take control of $6540 area.

There is a high chance that, the pair may recover slightly to $6540 and then drop to the lowest price of September at $6138. This is the closest support. Whether Bitcoin can receive momentum from this support, more fundamental factors and positive signals are under observation.

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BTCUSD price chart H1 Oct 3, 2018

According Bloomberg record at the beginning of October, Bitcoin transactions in OTC are rising considerably compared transactions on exchange platforms. OTC is one of the best options for miners and institutional investors who want to get exposed to Bitcoin through private contracts. TABB has released a research stating that OTC market processed $250 million to $30 billion transactions on a daily basis in April this year. Whereas other exchanges only recorded of $15 billion daily trading volume. It can be inferred that these whales have entered the crypto market for long time and created ferocious swings recently.

Anyway, this is a good development for cryptomarket when many players on traditional financial market, including hedge funds and brokerage firms, have appeared. They will help facilitate the cryptomarket with high-end products and custody services.

Written by nami.today

Featured image from HedgeEye

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