Bitcoin on Sunday jumped 2.13 percent against the US Dollar as USD-pegged cryptocurrency chain up (USDT) resumed its implosion.
BTC/USD was in a sideways sentiment for most of the weekend career session. The bearish trendline has capped the upside bias on multiple causes. Nevertheless, the pair — from the past 8 hou rs to the time of this writing — has induced a successful breakout action, breaking the cap mentioned above and forming new intraday highs shortly before 6464-fiat. At the same time, CoinMarketCap.com is showing a massive decrease in Tether value — about 4 percent — mirroring the scenario of the October 15 swap session that prompted a massive upside rally throughout the cryptocurrency Stock Exchange.
BTC/USD Technical Analysis
The breakout action has allowed BTC/USD to retest October 24 high-priced towards 6470-fiat while jumping above the pair’s 100H and 200H humble moving averages. The RSI momentum indicator has also jumped towards a favorable getting area owing to the recent upside volatility. And, the Stochastic Oscillator is already backwards its overbought area, awaiting correction.
The BTC/USD price action is also propriety a rising channel (the dotted one) as of now, with a particular tendency to treat the belittle black-dotted trendline as support. If the pair continues the uptrend, one might tally the said ascending dotted support line as a potential reversal butt off every near-term downside correction.
Nevertheless, BTC/USD is already in a breakout effectiveness following the invalidation of the descending trendline depicted in blue. There could even be a bull trap possibility so placing a stop loss to maintain every covet/short trade would be advisable.
BTC/USD Intraday Analysis
We have exited our extended position towards 6421-fiat on considerably moderate profits and are now enlisting a new range defined by the Fibonacci retracement swing from 6032-low to 6810-high. The new catalogue has 6421-fiat acting as a new interim support and 6470-fiat as the in-between resistance level with a sight towards 6513-fiat as the quiescent interim resistance.
As usual, we are first entering a long position road to 6470-fiat while maintaining a stop loss 3-pips beneath the entry point. A break above the said long target last will and testament have us open another upside position towards 6513-fiat. In this status, a stop loss order just 3-pips below the entry substance will define our risk management strategy pretty well.
Conversely, a pullback deed makes the lower dotted rising trendline our most likely brace level. That said, we’ll enter a short position towards this denoted level while maintaining our stop loss 2-pips above the item point. If the lower trendline gets broken during an extended bearish punishment action, then 6300-fiat will become our primary downside object.
Featured Image from Shutterstock. Charts from TradingView.
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