Bitcoin (BTC) price analysis: no 10th anniversary lift but bulls target 50-day MA at $6,370

btc code

The bitcoin whitepaper’s 10th anniversary has produced a welter of articles in the media about the crypto asset.

Suffice to say, if you got in early you are sitting pretty. If you bought in December last year it is a different matter – those losses are very ugly.

As bitcoin looks forward to the next 10 years, market participants are more concerned with when it will break through resistance at $7,000.

However before we get to $7k, near-term resistance has appeared at the 50-day simple moving average. As the month draws to a close, $6370 is the key target for bitcoin bulls, as can be seen in the chart below:

bitcoin chart 31 oct

BTC 4-hour chart 31 October

 

The drop two days ago has seen no attempted retracement occur, which has to be a sign of exhaustion among buyers.

We saw the hack of Canadian exchange MapleChange bringing out the sellers. That was helped along by the publication the same day of a report from the UK government’s crypto taskforce, which some may have interpreted – wrongly in our view – negatively.

Bulls will be encouraged by the higher low seen in the 4-hour chart since the 11 October pullback.

Goldman Sachs and Facebook

A report from The Block that Goldman Sachs may be onboarding a handful of clients to its crypto trading product could help to bolster bitcoin, although the source cited at the US investment bank is not named.

Facebook released its latest earnings numbers yesterday and it said it was investing in heavily in fixing its privacy, fake news and hate speech problems.

Given the Zuck’s New Year message in which he said encryption and crypto would be actively researched with a view to finding deployable solutions to those problems.

David Marcus,  the VP formerly in charge of Messenger, now heads up the blockchain efforts for the social media company.

Yesterday’s news that Coinbase is now valued at $8 billion after raising $300 million in its series E funding round, has also added to the soothing mood music but is not enough to catalyse the price higher.

Overall crypto market cap is $202.8 billion and BTC dominance is 54.1, according to coinmarketcap.

Live 1-hour chart below courtesy of TradingView


About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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