Bitcoin Analysis for 2019-10-31 [Premium]

Bitcoin Price Highlights

• The Bitcoin price has returned to validate the previous resistance line.
• It has found support above the 200-day moving average (MA).
• The BTC price is trading inside a short-term descending triangle.
• There is support at $8600.

Descending Wedge

The Bitcoin price is still facing resistance from the 100-day MA. However, an interesting development is the fact that it has returned to the previous resistance line.This is a very customary movement after breakouts and often indicates that the price will continue its upward trend.

This is strengthened by the fact that it has found support above the 200-day MA. This MA previously acted as resistance twice on October 1 and 10.

If the support area created by the 200-day MA and the previous resistance line holds, in my opinion, the BTC movement can be considered bullish.

Short-Term

However, the short-term outlook gives a completely different view.

The pattern created looks a lot like a descending triangle, out of which we should breakdown today based on the projected end of the pattern.

This is strengthened by the fact that there is virtually no support until $8600 — right at the previous resistance line which was crushed on the October 25 increase.

Therefore, I would expect the price to break down from this triangle later today.

Good luck and happy trading! For yesterday’s analysis click here.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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