This analysis is intended for swing traders or medium-term investors. As a reminder, swing trading is a strategy of speculation in financial markets where an asset is held only for a few days to take advantage of price fluctuations. In this analysis, which you will find every week, I will detail my vision of the market and more specifically the one of Bitcoin. In addition to a technical analysis, I will summarize 3/4 of the news that impacted the market.
Since my last analysis, the situation has not changed much. Bitcoin has simply begun its consolidation phase. It should be noted that in a time frame weekly, the Bitcoin price has found support on the EMA 200.
Note: An EMA for Exponential Moving Average is a type of statistical mean used to analyze ordered series of data, most often time series, by suppressing transient fluctuations in order to highlight longer-term trends. This average is called a moving average because it is continuously recalculated, using at each calculation a subset of elements in which a new element replaces the oldest or is added to the subset.
Currently Bitcoin is in a range on a daily time frame : with an upper bound at around 8500$ and a lower bound at 7800$. So I don’t expect us to get out of this range any time soon, I dread a few days of “no movement”. Here are the two scenarios I’m considering — we don’t forget that I’m not a soothsayer, just a trader who plays scenarios with a good money management. There are of course other scenarios possible.
- Scenario 1 : We range in the area delimited above then break it up, stabilize then we will look for the 9600$ zone aka our old symmetrical triangle support which would then become a potentially important resistance.
- Scenario 2 : We range in the area delimited above and then break it down, direct fall in my “ideal rebound” area for the recovery of the bull market. And in addition to that, we are closing the gap in the futures market that I presented to you in my previous analysis.
From a technical point of view, the daily RSI is still over-sold and I am still waiting for the MACD to cross upward, which should not be too long!
Don’t forget your stop-loss, good money management is the basis of all trading. If you do not have all the knowledge on this subject, I invite you to read this article.
- Japan giants joined force to create a security token offering association
According to Nikkei, six Japanese giants including Nomura Securities, Monex, Rakuten Securities, etc have formed an association for creating rules and guidelines on securities token offering.
- Libra releases roadmap
On Oct 2nd, Libra shared its roadmap stating that the company would launch their testnet after reaching 2nd milestone. The Libra’s roadmap has four different milestones for the pre-mainnet and the company will launch the mainnet after hitting the 4th milestone which is having 75 partners and launching testnet.
- Ohio stops receiving Bitcoin for tax
Last year, Ohio started accepting Bitcoin for taxes through ohiocrypto.com . However, the website was recently shutdown. Ohio Treasurer, Robert Prague believes that it is a wise choice to turn off the service until a formal opinion is formed by the Attorney General.
- Coinbase users will earn rewards on USDC holdings
Cryptocurrency exchange Coinbase wants to promote USDC adoption by letting their users to earn rewards when they keep USDC on their Coinbase account. So, if you’re an U.S customer, your Coinbase account has become an uninsured savings account with a 1.25% APY (Annual Percentage Rate) rewards rate.
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