Technical Analysis of BTCUSD October 2018

Technical Analysis of BTCUSD October 2018

Introduction

In this technical analysis of BTCUSD October 2018 we will go through BTCUSD monthly chart, BTCUSD weekly chart, BTCUSD daily chart and BTCUSD 4HR chart with comments and analysis. Click on the BTCUSD charts to view them in a larger view.

Technical Analysis of BTCUSD October 2018

BTCUSD: Monthly Chart

Technical Analysis of BTCUSD October 2018 monthly chart

October opens with new short selling Opportunities of the BTCUSD pair, further shattering the hopes of HODLERs as the pair enters into a bearish accumulation pattern. A similar bearish accumulation pattern was formed on March of this same year, which latter fueled up into a double accumulation pattern. In combination with the descending triangle chart pattern, the pair ‘s exchange rate is more likely to plummet as the recent pattern shows resistance at$7337.50 offering short selling trade at the new month’s opening price with stop loss and take profit $7337.50 and $4017.14 respectively. 

The only hope for Bitcoin enthusiasts to find a bullish price rally is if there is a price close above the bearish pressure resistance level of $7337.50. Well as we all know, hope is not a price indicator, and our first judgment is to trade according to the patterns formed at the moment!

BTCUSD: Weekly Chart

Technical Analysis of BTCUSD October 2018-BTCUSD-WEEKLY Chart

The current Bitcoin price bearish trend started from the formation of the bearish accumulation pattern formed early January of this year. Following our principle of trading in the moment, we short on formation of the price action pattern. Moving forward, price enters into an oscillatory motion, further highlighting the descending triangle pattern formed on the monthly chart.

Another interesting pattern which do not allow to escape our radar is a bearish hidden accumulation pattern which is still in view. As the MACD oscillator currently trades under its zero level, a bearish cross of the MACD lines would signal confirmation of the bearish divergence.

BTCUSD: Daily Chart

Technical Analysis of BTCUSD October 2018-BTCUSD-DAILY

The above daily chart is a great haven for swing traders as the pair displays huge swings. First was a breakdown of a bullish accumulation pattern on the 31st of July , sending the pair into a downward spiral. In a spirit of recovery, the bulls attempted an opposite formation by triggering a breakout of a bearish accumulation pattern on the 16th of August.

A long bearish candle on 05 September in the form of a bearish engulfing pattern pierce forced the pair racing downhill again. This high coincides with the bearish accumulation resistance of the monthly chart. The double bullish accumulation pattern formed on the 20th of September seems to have ran out of steam as opposite bearish accumulation patterns are triggered on 24th September and the last day of the month. This now sets up a bearish resistance at $6655.30 using the MA-65 as resistance. Should the pair close above this resistance level from this time horizon, a polarity change is triggered.

Conclusion and Projection

Bitcoin price continues to show more bearish sentiment on the higher time frame, hence we consider short entry trades as high probability trades. As shown on the 4hr chart below, we can enter a short order from the current the current level as price breaks out of a bullish accumulation pattern, followed by a bearish accumulation pattern. Stop loss order can be placed at $6680.00 with take profit target of $6400.00.

Technical Analysis of BTCUSD October 2018-BTCUSD-H4 chart

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