Bitcoin (BTC) price analysis: 1 November to see test of $6,000 before breakout?

trading screen

The crypto traders’ friend Altcoin Thoreau observes that if bitcoin (BTC) trading continues in the same pattern, then 1 November  2018 will be the first time that it has delivered a negative return on a year on year view.

Thoreau tweeted yesterday (21 October), the one-year anniversary of the first time that bitcoin crossed the $6,000 threshold.

1 November, a date to watch?

The significance of 1 November can also of course be interpreted with a bullish mindset, as the chart below shows.

Our dashed purple line shows the $6,000 support level and the blue (week view) vertical line the 1 November  2017 break above $6,000.

The strong support given at $6,000 is evident in the much commented upon descending triangle wedge of the 2018 price action.

That has seen market participants’ confidence grow that the bottom is in – seen in the lack of a fall below support rather than in buying strength.

Tightening tension

The tightening tension of the wedge and the strengthening bottom at $6,000, and alongside that Thoreau’s bearish signal,  indicate a market where bulls and bears are well matched, cancelling each other out for now.

However, the 1 November could be an important turning point for the market if it shows up in the algos of traders.

It could be that it will be the breach of bitcoin’s $6,000 support that triggers the much-anticipated but yet to materialise trend reversal.

btc chart

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