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Bitcoin Price Analysis: Eyes First Monthly Gain Since June

October 30, 2019 at 12:54 PM | By Jit Sutradhar Markets


  • Bitcoin seems to be posting the first monthly gain since June. Percentage increase, however, may be less than 10 percent as reported daily chart buyer signs of fatigue.
  • A breakdown of the triangle on the hourly chart, if confirmed, could result in a pullback to support at $ 8820.
  • A high volume of contracting triangle breakout is likely to result in a retest of the recent highs above $ 10,000.

Bitcoin (BTC) is on track to end a three-month losing streak, after recovering from recent lows around $ 7,400 views a week ago.

Number one cryptocurrency currently priced at $ 9,200 in Bitstamp – up 11 percent from October 1 opening price of $ 8304.

If confirmed, the close will mark the first monthly rise since June, as cryptocurrency which fell 6.27, 4.8 and 13.51 percent in July, August and September respectively. Tendency to lose three months is the longest since January 2018.

  • Bitcoin fell 6.27 percent in July, ending a five-month run of profit, which saw prices rise from $ 4,000 to $ 13 880.
  • The increase in October will be the sixth monthly increase in 2019.

It should be noted that the BTC is trading at four-month lows under $ 7,400 a week ago and looks set to record a loss for the fourth consecutive month.

the tide, however, turned out to support the bulls on Friday and Saturday, when Bitcoin jumped 42 percent from $ 7,500 to $ 10,350.

The monthly increase will be more than 20 percent have cryptocurrency hold gains above $ 10,000. BTC, however, quickly fell back into a four character and has witnessed a solid two-way business in the range of $ 9,950 – $ 9,050 in the past 48 hours.

BTC technical charts show the probability of falling all the way back below the opening price of $ 8304 monthly low. However, the price may fall into the former resistance-turned-support at $ 8820, in this case the monthly increase will be less than 10 percent.

Hourly chart

Hourly chart

BTC has carved a low volume price range narrowed or contract a triangle on the hourly chart. A dip below the bottom edge, currently at $ 9,100, which will confirm the details of the triangle and can speed up the correction to $ 8820.

No violations would expose the next support line at $ 8,474 (horizontal line), despite a sustained decline below $ 8820 looks unlikely.

Bitcoin will likely challenge recent highs above $ 10,000 if the contract triangle ends with a high volume breakout. At the time of writing, the upper edge of the triangle is seen at $ 9,500.

Daily and 4-hour charts

Daily and 4-hour charts

Repeated failure to sustain gains above the moving average and the 100-day red candle every Monday with a long upper shadow indicates the buyer fatigue.

Furthermore, a line chart shows a 4 hour channel interference, the consolidation means has ended with downside break, opening the door for a deeper pullback.

Therefore, the possibility of BTC dive out of the narrowing of the price range at high hourly chart.

Monthly and weekly charts

Monthly and weekly charts

Bitcoin closed well below the lower July $ 9049 in September (on the left), confirming the downside break of narrowing the price range.

Bearish pattern is still valid because the prices holding well below $ 10 949 September highs.

Traders, however, do not need to wait for confirmation of a bullish market above $ 10 949 and can adopt a bullish stance if the price managed to end the week (Sunday, UTC) above $ 9725. That would confirm the breakout line falls on the weekly chart (top right).

Disclosure: The author does not hold cryptocurrency assets at time of writing.

Bitcoin image via Shutterstock; charts by Trading View

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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