Home / Crypto Currency / Bitcoin Analysis: BTC Faces Bearish Reversal as Dollar Strengthens

Bitcoin Analysis: BTC Faces Bearish Reversal as Dollar Strengthens

bitcoin strong


The bitcoin-to-dollar exchange rate has dipped close to 1 percent on Thursday, now trading at 6470-fiat.

The outcome of the US midterm elections with Democrats sweeping a sharp win in the House had certainly shaken the US dollar yesterday. The greenback nevertheless sustained its overall bullish momentum ahead of the Federal Reserve policy meeting today. It looks to hold on to its crucial supports owing to optimistic wage, price, and labor market data. Bitcoin, at the same time, could find it difficult to push through its critical resistance areas if the dollar remains strong.

The BTC/USD trading pair is already hinting at bearish correction action upon pulling back from the 100-period simple moving average (SMA). Let’s have a look at the following daily chart to understand it further.


The bold curve depicted in sky blue represents the 100-period SMA. BTC/USD has tested it as resistance on three separate occasions recently. The current pullback action also visibly originates upon testing the blue curve on daily charts. A medium-term descending trendline is also capping the upside action; therefore, intensifying the selling sentiment that is already there.

The RSI momentum indicator, in the meantime, has undergone a breakout action after invalidating the upper trendline of the descending triangle formation. This uptrend is more visible on the lower timeframe charts, so let’s have a look at the 4H one instead.


We are forming a rising wedge pattern which typically results in a large downside correction from the top. That said, we are now retesting the top line resistance of the wedge, which could yield some decent long opportunities. In the RSI indicator, we can already see a double top formation that attests a near-term run towards the upside resistances (plural, because the descending trendline is also acting as a wall between the pair and its extended long action).

BTC/USD Intraday Analysis

We are pretty much placing our positions according to the levels inside the rising wedge. That said, a pullback from the top resistance trendline will have us enter a short towards the lower support trendline, and a bounce back from the lower support will allow us to enter an intermediate long position towards the descending trendline. On both the positions, maintaining stop orders some 4-pips opposite the direction of the price action defines our risks, overall.

A breakdown below the lower support trendline of the rising wedge would have us aim the 200-period SMA (on 4H TIMEFRAME) as our potential downside target. As we enter a short, we will maintain a stop loss order just 3-pips above the entry point to minimize our losses should there be an unexpected bounce back action.

A breakout above the descending trendline in black will have us enter a long position towards 6600-fiat, our primary upside target for our intraday strategy. A stop loss just 2-pips below the entry point will define our risk management outlook.

Trade safely!

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Read more

Check Also

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.