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Bitcoin to USD ( BTCUSD ) Forecast & Weekly Analysis, October 31 201

Bitcoin to USD Weekly Forecast & Analysis for Bitcoin Brokers

Introduction

A price spike two weeks ago was interpreted by some people in the crypto trading community as a possible come back for cryptocurrencies; well hate to break your heart, if such moves do not occur on the monthly scale, the Bitcoin to USD exchange rate still maintains a bearish outlook. Read further as we dive into the events that have brought the price to where it is and where it most likely will be heading.

Fundamentals

Review of Past and Upcoming Events in the Bitcoin Community

Bitcoin to USD Analysis - 31 Oct 2018

Cboe XBT Expiration Date 17 October

A bearish closing bar at the Cboe XBT Expiration date signalled an opposite bearish spinning top with a low candle wick. This indicates uncertainty of price direction at this point as the pair just formed a bullish accumulation pattern on October 16.

Margin Trading and Funding on COBINHOOD 19 October

Prior to the announcement of margin trading and funding on Cobinhood, the price of the BTCUSD pair has already indicated signs of weak bullish sentiments by a collapse of the bullish accumulation pattern on the 18th of October.

CME Bitcoin Futures Last Trade Date 26 October

On the 22nd of October, a double bullish accumulation pattern was triggered indicating where the buyers had their orders placed. Having an understanding of the general bearish trend of the BTCUSD, it won’t be a bad idea to anticipate a breakdown of bearish accumulation. These series of price breakdown of the bullish accumulation pattern confirmed the strong bearish sentiment. 

ETC Bootcamp in San Francisco 27 October

This event that took place in San Francisco lead to a huge spike in the price of Bitcoin triggering a lot of tight stop losses which is not a problem as long as the price did not close above the resistance level of $6589.00, trade position can still be entered in the same bearish direction. This bearish move is still very relevant based on the bearish regular divergence confirmed by the dead cross of the MACD oscillator.

Technical Analysis

BTCUSD: Monthly Chart

Today being the last day of the month is a very significant timing for the direction the Bitcoin to USD exchange rate will take, considering the double bearish accumulation build on the monthly chart. This pattern alone will make a huge difference as to the continuation of the bearish trend of the pair. For readers who understand this pattern, will agree with me that this pattern offers a short-trading opportunity with a 16% risk exposure, with an expected 40% bearish profit target.

Cboe XBT Expiration Date 14 November

From the above monthly chart, we expect the Cboe XBT expiration date to bring bearish sentiments for the month of November, as we already anticipate a double bearish accumulation pattern on the monthly chart.

BTCUSD: Daily Chart

The daily chart illustration above shows the technical patterns that were fired on or at the point of release of the fundamental events. These patterns include the bearish regular divergence pattern and breakdown of bullish accumulation patterns on 18 and 23 October. Critical resistance levels of the bearish move are 7100.00 and 6589.00. Stop loss orders should be placed about 10points above these levels, and in the event of a price close above these levels, sell trades should be automatically exited.

Conclusion and Projection

A new monthly bar will be open in a couple of hours from now allowing us to enter our monthly short selling trade. However bear in mind that this trade is placed on the monthly chart, will have stop loss placed off of the same monthly chart. You can refer to the monthly chart analysis for our projection of the pair, as well as allowable risk exposure for a sell trade.

In order to take advantage of this short selling opportunity, visit the broker section of our website for a list of regulated crypto brokers that offer user friendly and interactive trading platforms for order entry.

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