- Bitcoin price follows technicals forecasted three weeks in advance.
- At current time, the BTC price has fallen 8% since the catalyst marker was issued.
- Traders in profit should apply cautionary measures. Weekend liquidity hunts should not be ruled out.(read below)
No FUD Fridays
A Bitcoin price analysis based solely on technical and on-chain analysis.
"Because only Chads and Steves care about the news."
Bitcoin price is in profit
Bitcoin price has validated the bearish trade setup forecasted throughout the week. The BTC price is halfway towards its first target but cautionary measures should be applied.
BTC Trade Setup
]Since August 1, the Bitcoin price has been coiling within a wedge-like formation. Two weeks ago, while BTC price traded $22,800, many news headlines started calling for an imminent sell-off. A warning was issued to FX subscribers not to participate in the FUD as higher liquidity levels at $24,800 and potentially $25,400 stood a high chance at getting breached.
“Bitcoin price currently auctions at 23,905. There is a clear bearish divergence on the daily chart, prompting the sellers to aim for lower targets consistently. Still, the liquidity levels at $24,800 and $26,950 have not been breached. An ideal bearish scenario would be a breach into these levels….”
How To Trap A Hungry Bear Thesis
Bitcoin price managed to tag the first target at $24,800 and in doing so revealed more of the strength of its character for future price targets. A forecast was issued on August 18 calling for an end of the uptrend if and when $23,125 where to get breached,
“The safest way to approach this short will be a daily close below the level followed by a pullback into the breached trendline. If the bears can accomplish two attempts at $23,125 in said manner, a plummet of up to 20% will be on the cards, targeting $18,600.”
NO FUD Just Charts Thesis
The following day an updated analysis provided justification for opening the anticipated short position as momentum and divergence provided more confidence in taking the trade.
“The last marker BTC price will need to justify opening a short position is a breach below $23,125 (as mentioned in previous outlooks). Invalidation of the downtrend scenario (providing that $23,125) is a breach above $26,800.”
BTC/USDT 1-Hour Chart
On-chain Analysis
The most noteable on-chain analysis, which confounded the current sell-off, was spotted seven days in advance on August 12.
Original Post
"Additionally, Santiment’s Active Transactions Indicator shiows a considerable uptick in daily transactions. On May 4, May 14, and June 24, the indicator showed a similar sporadic upswing, each time followed by a minimum 20% plummet in the Bitcoin price shortly after.”
Whats to come?
Because the weekend approaches a wider stop was issued to avoid being tagged by smart money operatives. Bitcoin price can still rally once more into the $25,000 to collect liquidity so it is best to either take profit now or at most near $18,900. Traders can also move the profitable trade into break even, or accept holding a very risky position over the weekend. For now traders who partook in the trade setup are currently in profit 0.5x times their initial risk capital and counting.
BTC/USDT 1-Hour Chart
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.