Bitcoin to USD weekly outlook for bitcoin Brokers
Contents
Introduction
The sudden bullish thrust in the exchange rate of Bitcoin to USD was easily spotted by our double bullish accumulation pattern finder. Read on as we unveil the upcoming events this week and how the market price responds to them.
Fundamentals
This week we won’t go farther into history when looking at the previous fundamental events, as we’ve covered them already in our last article. However, we’ll look at the not too far past events and upcoming events.
Review of Past and Upcoming Events in the Bitcoin Community
BCH Hackathon Date 10th October
On the start date of Bitcoin Cash Hackathon, the pair triggered a bearish accumulation pattern causing the exchange rate of the pair to plummet by 5.76% compared to a stop loss that could have been placed at 0.77%.
With no major fundamental announcement in place, the price chart from the daily chart perspective triggered a double bullish accumulation pattern, leading to another 11.85% climb in Bitcoin price compared to a 1.81% stop loss. This was a major recovery in the strength of the BTC.
Cboe XBT Expiration Date 17th October
The 17th of October was the expiration date of the Cboe XBT which lead to price closing bearish. However, a bullish accumulation price pattern was triggered on the closing price of October 16, which gave hope of a probable continuation of the bullish swing, owing to the fact that price did not close below the bullish accumulation patterns support at the Cboe XBT expiration date.
Margin Trading and Funding on COBINHOOD 19th October
The closing price of the 18th which ushered in the launch date of Cobinhood’s margin trading also closed with a bearish accumulation pattern, a confirmation of the Bears’ dominance in the market. In addition to that, the pair closed below the bullish accumulation pattern of the 16th forming a bearish breakdown pattern.
Upcoming Events
CME Bitcoin Futures Last Trade Date 26th October
October 26 is the last trade date of the CME Bitcoin Futures. Being an event that’s to come up towards the last days of the month, the monthly chart will be our chart of focus, since a bearish accumulation pattern is already formed at the closing price of the month of September. As the current daily price pattern points towards bearish sentiments, this may lead to the month of October closing bearish, consequently leading to a double bearish accumulation pattern at November open, just after the CME Bitcoin Futures last trade date.
Technical Analysis
BTCUSD: 4-hour Chart
The above 4-hour chart illustrates the buildup of the bullish trend as price first breaks out of a bearish accumulation pattern on the 12th established a very strong support level. The pair later established a bullish accumulation pattern, signalling optimism towards the value of Bitcoin with a support level at 6557.96.
Price gets trapped in a channel of resistance and support at $6694 and $6557.96, levels triggered by a bearish breakdown and bullish support levels.
BTCUSD: 2-hour Chart
Although the 2-hour time frame appears to be trading above the 65-period moving average, fast forwarding to the moment this post is made, the pair already trades below the moving average which is a confirmation that the breakdown of bullish accumulation on 12:00 hour of October 15 is still at play.
Conclusion and Projection
Following the daily chart price pattern and a price breakdown of the 4-hour chart support, it’s obvious that crypto brokers and traders may be shorting the pair as every attempt for bulls to push the price up via a bullish accumulation is nullified through bearish breakdowns as shown on the 4-hour charts. As a result, we project the exchange rate of Bitcoin to USD to head further south towards $6200.
DISCLAIMER
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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