In Depth Analysis

  • After having traded in a constricted and extended range for nearly 3 months, Bitcoin is starting to move past this indecision phase.

  • Momentum and the likelihood of a breakout from the current range.

Interim Analysis:

BTC

Throughout Bitcoin's sell-off on October 30th price found support at what can now be established as the range low at $6,256. This key support coincides with the previous mid-term diagonal resistance trend line, labeled on the above chart as R2. As of yesterday, with the breach of $6,459 Bitcoin's price has once again breached the 50day Moving Average to the upside. Which in terms of relative volatility after an extended range, presents a strong case for an upwards rally.

As of current, BTC appears to show range trade characteristics, with a range high of $6,760 and a range low of $6,256. Though moving averages dictate that strong resistance is present overhead at $6,569

The Case for Moving Averages:

BTC

Since September Bitcoin has struggled to breach the 100day moving average. Bears have relentlessly defended that zone on three separate occasions. As of current the 100day MA is the first immediate resistance at $6,569.

Odds of breaching the 100dayMA resistance come in the form of confluence between Tom Demark's sequential count, and shorter term moving averages converging to the upside. TD sequential dictates the possibility of three more up candles on the daily.

If the 100day breach scenario unfolds and Bitcoin Finds support at the 100day MA, the currency could be setting the path for a strong end of year rally.


Any opinions, news, research, analyses, prices, predictions, or other information contained in our publications is provided as general market commentary and does not constitute investment advice. George Saber and Coin Observatory LLC will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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