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Bitcoin Analysis: Price Above $6500 Resistance post US Midterm Elections


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Bitcoin on Wednesday challenged new highs as price against the US Dollar surged 1.42 percent within a few hours.

CHART FROM TUESDAY NOVEMBER 7, 2018 | SOURCE: TRADINGVIEW.COM

The BTC/USD pair built upon the near-term bullish scenario after breaking above the interim resistance explained in our previous analysis. A breakout action above 6421-fiat started attracting long positions towards 6500-fiat as the primary upside target. The pair rallied and established a new intraday high towards 6515-fiat before retreating across the exchanges. It is now trading at 6507-fiat.

The Dollar meanwhile slumped very little ahead of the US midterm elections. As of now, the Democratic party has announced its victory after winning 218 seats to control the House. The results could particularly weaken the dollar further, allowing US stocks to breathe a bullish air after the markets open today. In parallel, Bitcoin – a 24/7 open market – is already showing signs of a strong bullish bias in near-term.

BTC/USD Technical Analysis

PRESENT DAY CHART | SOURCE: TRADINGVIEW.COM

The previous resistance at 6421-fiat is now taking up the role of a support after the BTC/USD rally. The pair is hinting a small bearish correction already, with its RSI and Stochastic Oscillator situated around the overbought area. The volume nevertheless has dipped as of now, meaning the new few hours could exhibit a stable price action before a downside correction attempt.

The BTC/USD pair is already trending inside a near-term rising wedge that is usually considered bearish for the same timeframe. The pair, now testing the upper trendline, should reverse and bring the lower trendline in view of the correction. That certainly is a decent short opportunity for day traders. Both the trendlines are almost parallel, so the price should start losing volume as they begin to converge. It could be the foremost signal of a breakdown scenario below the lower trendline. That also indicates that rallies taking place inside the rising wedge will prove to meaningless unless a sharp breakout above the upper trendline changes the technical dynamics overall.

BTC/USD Intraday Analysis

Our intraday analysis enables us to make profits regardless of the direction of the Bitcoin price action. The range we are watching today has 6513-fiat serving as interim resistance and 6421-fiat serving as interim support. The range is wide enough to apply our intrarange strategy. Therefore, a pullback from resistance enables a short position towards support and a retracement from support enables a long position towards resistance. It’s that simple.

Nevertheless, the real profits lie in the breakout targets. As we are already near the resistance level, a weak US dollar is allowing us to enter a long position towards 6640-fiat, our next upside target. Meanwhile, we are also maintaining a stop loss order just 3-pips below the entry point to exit the market on a small loss, in the event of a pullback action.

Looking towards the south, a break below 6421-fiat will have us enter a short position towards 6372-fiat, the bottom of the November 5 trading session. In this position, maintaining a stop loss order just 4-pips above the entry point would ensure that our risks stay lesser.

Featured image from Shutterstock.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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