Bitcoin (BTCUSD) Price Analysis: Bullish Pin Bar Prints, BTC Could Recover
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As reported, there is a possibility that Tesla, the electric and Eco-friendly car manufacturer, could accept Bitcoin and other cryptocurrencies as a form of payment. Though Tesla is yet to confirm, Zhao Changpeng tweet that he will buy a Model T subject to Tesla acceptance of BTC is interesting—and exciting for coin owners.
In line with their earlier announcement, Tether the embattled company behind the controversial stable coin USDT has “destroyed” by sending to an irredeemable address $500 million worth of USDT as they work toward maintaining parity. But, depending on how the market plays out, the company left $446 million worth of USDT at their treasury for contingency measures. Remember, and as highlighted in our previous publications, Tether Limited had a hard time forging and maintain a stable relationship with banks.
BTCUSD Bitcoin Price Analysis
Technically, BTCUSD is ranging and down 0.1 percent in the last day. But, this has been the case over the last couple of weeks. At spot price, BTC is down 75 percent from 2017 peaks and combined with an expectant market, chances are Bitcoin prices could recover.
Price wise, here’s what is happening in the daily chart:
Trend: Neutral to Bullish
The neutral stand is because despite attempts of higher highs in the last three months, prices are still confined within a tight $1500 trade range with clear resistance and support at around the $7,000-$7,200 and $5,800 to $6,000 zones. But, we retain a bullish outlook thanks to the strong support trend line of the last four months. Note that even in the face of strong liquidation, BTC often find support along the main support trend line connecting June and Oct lows.
Accompanying Oct 15 liquidation and capital flight was a surge in market participation. From the chart we can see that before Oct 15, volumes were low before spiking on that day and waning out in the next trading days. This is a mark of bulls and as long as prices are still trending inside Oct 15 high low with low trading volumes above $6,000, traders should maintain a positive outlook. Advising this is an effort versus result situation that points to bulls because 10 days after retracing from $7,700 highs, bears are fading as BTC buyers steady prices in lower time frames.
Candlestick formation: Oct 25 bullish pin bar
Interestingly, today’s candlestick is a pin bar complete with a long lower wick and this is bullish. Often the lower wick points to increasing demand in lower time frames part of reason why aggressive type traders should ramp up in the hourly charts.
Fundamentals are pro-Bitcoin and with supportive candlestick formation, we take a bullish to neutral stand expecting prices to align with Oct 15 buy momentum.