By Thursday, October 3rd, the BTC volatility ha smoothed a bit. The leading cryptocurrency is consolidating at around $8274.00.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
- BTC/USD Tech Analysis
- BTC demonstrates the worst result of all cryptocurrencies this week
- Bank of Canada thinks the BTC to be inefficient
On W1, the Bitcoin quotations have escaped the Triangle and keep declining inside the correction channel. Now, the quotations are between 50.0% and 61.8% ($7350.00) Fibo and may continue declining to 76.0% ($5860.00). A breakaway of the resistance level at $9850.00 may signal the end of the correction and the beginning of new growth to $13857.20. Upon the renewal of the maximums, the quotations may rise as high as $15550.00.
On the indicators, we can see the MACD histogram in the “red area”, while the Stochastic has entered the overbought area. All these signals together may hint at the development of a downtrend.
On D1, the BTC/USD keeps forming a descending correctional channel. After the quotations secure at 50.0% and 61.8%, an extension of the local correction may be expected. However, further movement after the pullback might be aimed at 61.8% ($7350.00) and 76.0% ($5860.00) Fibo. The descending of the MACD lines and its red area may confirm the movement.
On H4, the declining impulse has stopped for a correction. The escape of the Stochastic from the oversold area may signal the development of a pullback reaching 23.6%. The next aims of the correctional growth may be at 38.2% ($8747.00) and 50.0% ($9075.00) Fibo. The support is at the minimum of $7675.00.
The beginning of October turned out to be stressful for cryptocurrencies. The BTC once fell by almost 4.3%, which was the most ominous result among the top-10 cryptocurrencies.
At the same time, the interest to the Bitcoin remains rather high, for example, in Hong Kong – due to the recent protests. The interest has not been that high since the end of 2017, at least, on LocalBitcoins. At the end of September, the service processed transactions for $1.6 million.
The interest of Hong Kong investors to the BTC now seems logical: after a short pause, the protests against the law on extradition have resumed, and for the first time weapons have been used against protesting citizens. Political instability stimulates a craving for decentralized assets.
In Canada, the attitude to the BTC is the opposite. For example, the Bank of Canada has published a report from which it becomes obvious that the regulator considers the flagman cryptocurrency inefficient and too expensive in the sense of the spendings on mining. However, the Central Bank suggests some decisions to the BTC problems. Particularly, it suggests optimizing the speed of coin production and decreasing the commission for transactions. There is a yet more difficult way involving changes in the protocols.
Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.