Bitcoin to USD ( BTCUSD ) Weekly Outlook ,February 8 2019
Technical Analysis & Weekly Forecast for cryptocurrency
Introduction
Bitcoin, the number one cryptocurrency by market capitalization attracts the attention of a global audience as its trend direction often drags other Altcoins along with it. This week, we’ll be carrying out a thorough technical analysis of critical levels as well as fundamental events that may hint on possible trend change or continuation.
BTCUSD: Daily Chart
Let’s start from a daily chart overview of the market before we proceed to higher monthly and weekly, followed by lower 4hour and 2hour charts.
As shown above, the Bitcoin price is enclosed in a shrinking channel built by the formation of opposite bearish and bullish divergence patterns. Beginning from January 27 ’19, a breakdown of hidden bullish accumulation triggered an early entry to a hidden bearish divergence.
Recently, the pair is about to confirm another breakout of bearish accumulation on February 08 ’19 prior to publishing this article, therefore, indicating short-term scalping opportunity.
Bitcoin Fundamentals
Bitcoin: Previous Events
Cryptocurrency Exchange: QuadrigaCX Exchange CEO filed Will 12 days before Death
As a follow up to the recent financial troubles faced by the Canadian Exchange QuadrigaCX, as a result of the demise of the company’s CEO Gerald Cotten, Bloomberg recently gathered that the late CEO on 27 November 2018 before his sudden death filed a will that mentioned Jenifer Robertson, his wife as his only beneficiary.
Gerald Cotten who happened to be the only one with access to the company’s passwords left no clue on how customer funds can be retrieved upon his demise.
Proof of death in the form of a death certificate by the Government of Rajasthan’s Directorate of Economics and Statistics revealed that Gerald William Cotten died on Dec. 9.
This unfortunate incident has affected over 100,000 clients with about $190 million US dollars in fiat and cryptocurrency allegedly missing.
As a measure to recover the debts, lawyers of the exchange have proposed selling the firm according to a court proceeding on 5th February.
Upcoming Events
13 February 2019: Bitcoin Cboe XBT Expiration
Wednesday next week marks the expiration date of the Bitcoin CBOE. Cryptocurrency enthusiasts and HODLERs hope for a trend reversal of Bitcoin price as we come close to any important fundamental announcement such as this.
Technical
BTCUSD: Monthly Chart
Last month January closed bearish, confirming a double bearish accumulation and consequently indicating an increase in selling pressure just like a similar pattern formed between September and October 2018. By this recent technical development and owing to a fact that the trend has been dictated by the monthly chart, there is a high probability of price reaching the 65-period moving average with the price at 2508.6610.
BTCUSD: Weekly Chart
The weekly price chart is also in support of the monthly time frame as it shows a failure of hidden bullish accumulation, triggered in combination with a bearish accumulation last month January 14 ’19. Further bearish advancement beyond the 3218.0 support level will confirm an increase in selling presence.
BTC/USD: 4-HR Chart
On major cryptocurrency broker platforms, the 4hour chart of the BTCUSD today 08 Feb ’19 00:00 breaks out of a bearish accumulation. This supports the bullish regular divergence on the daily chart and a short-term campaign to go long on the pair.
Conclusion and Projection
The pair is clearly in a bearish descending triangle, based on the monthly chart analysis. As a result, we favor short only positions over long trades for the BTCUSD. The 65 period moving average mentioned under the monthly chart analysis is our projected price target going forward.
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