Bitcoin (BTC) Leaking Lower in Low Volume Trade
Bitcoin Price, Chart and Analysis
- Tight trading ranges and low turnover conditions persist.
- Horizontal support seen at $6,110.
The week started with a sharp spike, subsequently sold into, before low volume and tight trading trading ranges took control of the market once more. This pattern has dominated for the past month and may be the calm before the storm with a breakout becoming more and more likely. While this market is more sentiment driven than most, the technical outlook points to Bitcoin (BTC) re-testing horizontal support around $6,110, a level that has held for the last six weeks. Bitcoin trades below all three moving averages (20-,50- and 200-day), and continues to make lower highs when Monday’s spike is ignored. If $6,110 is broken and closed below, horizontal support between $5,769 and $5,887 comes into play and is expected to hold, at least in the short-term.
The picture may be clouded however due to the low volume backdrop – compounded by tight trading ranges - where any medium-to-large order can create an over-sized move either way. We warned about tight trading ranges at our weekly cryptocurrency webinar on October 10 – Bitcoin, Ethereum, Ripple: Beware of Tignt Ranges – and on Monday October 15 Bitcoin spiked $1,100 higher from the open before retracing.
Bitcoin (BTC) Daily Price Chart (April – October 19, 2018)
We look at Bitcoin, and a variety of other cryptocurrencies, at our Weekly Cryptocurrency Webinar every Wednesday.
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--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.