Bitcoin is on the rise, without stopping for breath and is currently worth $ 13420.
What to do now, is it time to buy or sell?
This analysis will sweep the cryptocurrency market and filter the best opportunities for you.
On the day that there is no positive outlook for the week, believe and trust, as the probability of you getting screwed will be very high.
The study below is not a guide to buying or selling. Manage your risk properly.
Market and Bitcoin Overview
Bitcoin Technical Analysis Weekly View
Bitcoin is trading in the $ 13400 range after rising more than $ 2000 in a week.
This zone represents an important resistance, since we arrived in May and June, and are not able to break the sales barrier.
As we are closing the week below the dashed line, my view is of a possible retreat to the levels of U $ 12000 - U $ 12400.
The positive side of this analysis is that we are in a strong upward trend, with bitcoin fundamentals getting better and better.
Breaking this resistance of $ 14,000 (we need to close a week above this zone), Bitcoin can reach up to $ 16500.
In the Past Analysis, we highlighted Ethereum and Cardano as good alternatives, unfortunately with the rise of bitcoin, altcoin suffers and cardano hit our stop, so this week you will see it as negative. Ethereum remains positive.
When looking at the altcoin market (alternative currencies to bitcoin), we have the following perspective.
When you read this table, it should be noted that there are several classifications.
The only ones that should matter are the ones that are positive, as they are the ones most likely to work.
Remember, analysis is a game of probability, math, that's all!
So, focus on those that are positive.
Ethereum / Bitcoin
Ethereum Technical Analysis on the Bitcoin Pair
When looking at Ethereum in the bitcoin pair, we see a bullish formation.
Price above the averages on the daily chart which characterizes a bullish formation.
Support in the range of 0.029 satoshis.
Resistances: 0.0357; 0.037; 0.0384
Ethereum / Dollar
Simple comment here, Ethereum reached our first target zone highlighted in the previous analysis, following current view.
Ethereum in the USD pair is trading in the $ 404 range.
Follows the bullish view, favored by the ETH / BTC also positive.
Supports: $ 380 & $ 400
Resistances: U $ 440 & U $ 470
Bitcoin Cash / Bitcoin
Bitcoin Cash analysis on the Bitcoin pair
Bitcoin Cash is consolidating in the 0.02000 satoshis zone (now it is slightly below, however, as it is a zone it is not so relevant).
In the analysis we highlight a green rectangle that serves as the main zone of the moment, which represents a zone of consolidation.
After a strong drop without reactions in the last periods, this zone can represent an excellent buying zone for the long term.
Therefore, this view is a HOLD view, not a trade view.
Support: 0.019- 0.020
Resistances: 0.022; 0.024
Vision Hold potential to achieve: 0.04 satoshis (100%)
Bitcoin Cash / Dollar
Bitcoin Cash Analysis on the Dollar pair
Bitcoin Cash is in a strong bullish formation on the dollar pair.
Looking at bch / btc, we reaffirm this long-term view. Good buys on support and tends to be an excellent long-term position.
Support: $ 255 - $ 272
Resistance: U $ 290; $ 315; $ 350; $ 400; $ 490
By: Isabela Ruiz Roque da Silva
HashRate (Total Hash Rate)
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general. It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1. Total hash rate on the 19th of October. Source: Blockchain.
Figure 2. Total hash rate on the 23rd of October. Source: Blockchain.
This week was a week of high Bitcoin price, but the hash rate did not follow the cryptocurrency trend. As we can see in Figures 1 and 2, the hash rate, instead of going up, fell to 133,536m; this indicates that there is less computational power at the moment to keep the network running. Analyzing just this indicator, this would indicate a possible drop in bitcoin, but we need to analyze the whole.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3. Bitcoin NVT, October 19, 2020. Source: Coinmetrics.io
Figure 4. Bitcoin NVT, October 25, 2020. Source: Coinmetrics.io
In the week of October 19 until October 25, 2020, Bitcoin continued its bullish run, which boosted NVT to 115.05. Like the hash rate, NVT is quite high and indicates a small drop in the short term. In the medium and long term, the trend is upward.
When we look at fundamentalist analysis in conjunction with technique, we are sure that Bitcoin remains in an uptrend in the Long Term.
However, in the short term it is impossible to foresee the breaking of this resistance zone that forms the way up to 14k USD.
We recommend caution this week about new positions.
Altcoins may turn out to be positive soon, exploding due to the violent retraction they have undergone.