The decline in the Bitcoin price was a surprise for someone, a reason for panic for someone else, while others used it to open an extended position. Let’s take a look at the situation, as we always do — with a calm mindset.
The BTC / USD pair went down to a level of $ 6,320 with a sharp impulse on 29.10 and is currently trading in a narrow range of $ 6,380–6,310, the lower limit of which acts as support. On the daily timeframe, EMA9 and EMA50 are tilted down and move parallel to each other. The MACD indicator is in the trade area and shifts up to the buy area.
Indicators on the 4-hour timeframe also suggest a further decline. If your stops have worked out, there is nothing to worry about though.
On the daily charts, indicators data also suggest a further decline. MACD is in the trade area, and both EMAs are also looking down and passing higher than prices. Slow EMA50 at $ 6,560 will act as a local resistance.
Even though the price came out of the global triangle, it continues to bargain without certainty. Therefore, all strong levels remain the same.
For growth, it is still essential to overcome the levels of $6,460, $6,525—$6,560, $6,650 and 6,800 $.
The reduction will meet support at levels: $ 6,310, $ 6,240–6,200 and September low — $ 6,100.
While the Bitcoin is trading in a narrow range, the observation of economist Michael Spencer that indicates that the Bitcoin became less volatile than traditional cryptocurrencies in the 3rd quarter of 2018 is especially relevant. Since September 5, the rate of the main cryptocurrency is more stable than the market for conventional assets of Wall Street.
Meanwhile, the market capitalization has reached its annual minimum the other day: $ 203.4 billion. At the same time, the activity of altcoin trading in the ERC-20 standard also dropped to yearly minimums. As Block analyst Larry Cermak notes on Twitter, these two indicators always correlate with each other:
P.S. We want to give a little advice to market beginners: never trade from specific levels. Ever consider the range: the longer the timeframe is, the wider the range will be. If you do have questions for us about the work with charts, please put them in the comments, and we will write a separate article with life hacks!