Summary
- The pair seemed to find resistance at the $6800 mark and support at the $6500 mark.
- A slow 0.19% loss was registered throughout the week.
The chart
The BTC/USD pair was dominated by a bearish trend. The week kicked off in a dead-cat bounce following a bearish trajectory recorded just before the close of the previous week. However, halfway the week, prices took a slow dip before rebounding slowly as the week came to an end.
This followed weeks of stability, with the pair oscillating (monthly average) between $6300 and $6500. The slow performance of the pair can perhaps be attributed to the likeliness of traders trying to avoid high-risk and high-return trades in times of stability and low volatility. The period of extended stability is expected to persist with the pair rallying for prices between the Oscillating ranges.
The week kicked off on a high of 6611 (Point A), dropping below the $6500 support level to a low of $6462 on October 25 (C). The 30-day moving average crossed over the 9-day moving average as the week started (October 21 (D)), indicating a bearish trajectory. However, as the week wore on, the 9-day moving average crossed over the 30-day moving average (October 26), indicating an incoming bullish trend.
Following a Chinese court’s declaration that holdings in BTC are legal, buyers flocked the market to purchase Bitcoin. This can be attributed for the bullish trajectory recorded on October 26 (B).
The 1-day price charts for the pair indicted stability in the market with no attempts to break out of the $6800 resistance level.
On hourly charts, the volume of Bitcoin traded against the dollar subsided in the last 48 hours from 3.5 Billion USD to 3.1 Billion USD. This amounts to a 10% drop in trading activity.
This can perhaps be attributed to the tendency whereby traders desist from initiating high-risk and high-return trades during periods of extended stability and low volatility.
Due to the low volume and trading activity of the cryptocurrency exchange market, a sudden breakout of Bitcoin in a higher price range is becoming increasingly unlikely, at least in the short-term.
