Bitcoin (BTC) has been following an interesting pattern of completing a bullish and bearish cycle on the sixth of every month in an alternating order. As we can see on the BTC/USD daily chart above, a fall is followed by a rise. This has been happening in alternation since the beginning of the correction. The chart shows that the big swings at the beginning of this pattern have now been reduced to minor movements. The bullish period between October 6 and November 6 has seen such small movement that it can be said to have made no significant impact at all.
This pattern of rise and fall is also supported by other patterns on the chart that signal a bullish reversal. The support line has also held firmly and if this pattern of alternating rise and fall ensues, Bitcoin (BTC) could very well end the year close to its previous high. The RSI is recovering from oversold levels and has now approached a normal. Bitcoin (BTC) is currently at a very favorable point for bullish entries. Currently, the price is just above the support line and appears to be all set for a bullish comeback but the reality is, there are not enough bulls in the market for a strong move.
The past few months have been devastating for BTC/USD and a lot of investors are still running scared. Institutional investors are looking for more clarity regarding regulations concerning cryptocurrencies and also safer ways to invest and store their coins. As for retail investors, most of them comprise of first time investors who have never traded any financial asset before. So, when they saw that Bitcoin (BTC) is making 20% gains every day, they thought this could go on forever and jumped with both feet, only to find the carpet pulled under from their feet. Big investors have always played small investors as cannon fodder and have gotten away with their schemes even in regulated markets like forex or the stock market. Cryptocurrencies is a new market with no proper regulations which means it is natural to expect that those who can afford to not play by the rules, most likely won’t.
While it may be easy for market makers and manipulators to influence the price of Bitcoin (BTC) short term, it is getting difficult more than ever to influence its price long term. For an asset with limited supply, like Bitcoin (BTC) that means the price has to go only in one direction long term and that is up. As for short term, the current market outlook favors a strong buy at this time. BTCUSDLongs is currently trading in a falling wedge, a bullish indicator which means the price should uptick soon as it breaks out of that wedge. On the other hand, BTCUSDShorts is trading in a rising wedge, a bearish indicator signaling a take profit period for the bears which should further increase the price of Bitcoin (BTC) in the near future. All things considered, Bitcoin (BTC) will begin a new cycle in the month of November.
The post Why Bitcoin (BTC) Will Begin A New Cycle In November appeared first on Crypto Daily™.
Source: CryptoDaily.co.uk
Original Post: Why Bitcoin (BTC) Will Begin A New Cycle In November
