Bitcoin short-term Price Analysis: 20 October

  • 20 October 2020, Tuesday, 11:06
Bitcoin short-term Price Analysis: 20 October
Source: Pixabay

The Bitcoin chart is red-hot at the moment as the token continues on its pursuit to re-test $12,000 over the next 24-hours. While the market is still bullish for Bitcoin, other altcoins were indicative of a bearish pull, hence the same sentiment might creep into Bitcoin’s chart. At the moment Bitcoin is currently trading near the $11.85 k mark but volatility pushed the price momentarily above $11,900.

BTC/USD on Trading View

Tracing back to its local bottom on 1st week of September, Bitcoin has reacted strongly after testing the support range of $9800-$10,000. Breaching above key Fibonacci lines, BTC is currently dwelling above the 0.786 lines after a massive breakout from the symmetrical triangle. The price quickly pushed above $11,550 and then consolidated above $11,700 over the past few hours.

Now, in the last 4-hour window, the price opened a trading window between $11,711 and $11,943. Volatility dragged into the next candle as Bitcoin is valued at $11,883 at press time.

Now, riding from the support of 50-Moving Average, BTC’s trading market also received a boost from on-balance volume(OBV). The OBV’s steady incline over the past few weeks is fundamentally important from an on-chain perspective. The market is active and possibly pushing for a Bitcoin spike.

Source: BTC/USD on Trading View

However, the impending break above $12,000 might be short-termed at best. Because of the quick rally, a period of correction should be accounted for as well. While the price oscillated between an ascending channel, the price will entertain a fakeout bullish break, before dropping below $12,000.

A re-test at $12,000 would still be positive since it would be more likely that BTC tests the resistance again towards the end of the month. Stochastic RSI suggested a bullish crossover near the oversold region, hence momentum is definitely shifting towards the buyers. Choppy markets will ensue during the course of the current week as Bitcoin consolidates near the $12,000 range.