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Bitcoin short-term Price Analysis: 11 October

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Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice

Bitcoin has surged by 8% over the last 48 hours, a figure that is not really uncommon to a volatile asset like Bitcoin. However, the surge included 2-3% candles with consolidation separating them. At press time, Bitcoin was still in the said consolidation, with its charts pointing to a move to the upside in the short-term.

Bitcoin 1-hour chart

Source: BTCUSD on TradingView

The attached one-hour chart for Bitcoin pictured the formation of a bullish pennant, one that indicated a target that was a 3.40% surge away. However, with the cryptocurrency’s price consolidating and fueling confusion and chaos, Bitcoin’s price might be pushed either way.

Although a bullish pattern in nature, there was the possibility of bears taking control, leading to a dump and the formation of a Bart pattern. This Bart pattern would threaten future performances and hurt past surges as well.

Apart from the Bart position threatening the price performance, there seemed to be a fake-out that could be as harmful as a Bart pattern.

Hence, care should be advised before entering a long position and appropriate stop-loss must be employed.

A long position with an entry at the press time price [$11,354] and a stop-loss at $11,266 [at the base of the pennant] would be enough to absorb any short-term volatile movements.

The pole of the pennant indicated that theoretical take-profit levels are at $11,753 [a 3.74% surge from press time price levels]. Since this is a make or break scenario, one needs to take care of the downsides as well.

Hence, should the price head lower to form a Bart pattern, there are two important support levels, as shown in the chart above. The first zone ranges from $11,104 to $11,014. And, although unlikely, the second zone ranges from $10,945 to $10,832.

At the time of writing, the price had already confirmed a breakout to the upside. Hence, longing at [$11,416, an immediate resistance] would also yield similar profits.

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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.
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