Technical Analysis

BTC/USD Analysis – October 18, 2021

By LonghornFX Technical Analysis
Oct 18, 20213 min

Bitcoin Price Prediction

Bitcoin is currently driving the market, up 2.7 percent on the day, 14 percent in the last week, and 32 percent in the last month. BTC often peaks before altcoins, so their time may come when bitcoin prices fall.

According to CoinGecko, Bitcoin is presently only 3.4 percent away from its all-time high of $64,800 set on April 14. In terms of market capitalization, Bitcoin is now valued nearly $1.18 trillion, accounting for almost 45 percent of the whole. Bitcoin is the sixth largest company in the world, greater than Facebook with $915 billion but smaller than Amazon with $1.7 trillion.

The Bitcoin price has settled above $60,000, signalling that it is entering bullish zone. BTC even broke through $61,500 and $62,000 resistance levels. Recently, a minor negative pullback happened below the $62,000 pivot zone. The price went below the $60,000 support level and the 100 hourly simple moving average.

However, the downside was confined to $58,800. A low was reported near $58,888 before the price began to increase again. There was a clear break over the $60,000 barrier and the 100 hourly SMA. Price breached the 50% Fib retracement level of the downside correction from the swing high of $62,887 to the low of $58,888.

On the other hand, Mexico's President, Andres Manuel Lopez Obrador, has stated that the country is unlikely to follow El Salvador's lead and adopt cryptocurrencies such as Bitcoin as legal tender alongside fiat currency. Obrador stated on Thursday that Mexico must retain orthodoxy in its financial management and will not change its stance on cryptocurrency.

BTC/USD Intraday Technical Levels

Support Resistance

56665.0 58258.0

55976.0 59162.0

55072.0 59851.0

Pivot Point: 57569.0

BTC/USD - Technical Outlook

On the BTC/USD hourly chart, there was also a break over a strong negative trend line with resistance above $60,850. Bitcoin has now breached the 76.5 percent Fib retracement line of the downward correction from the swing high of $62,887 to the low of $58,888.On the optimistic side, a break of the 63,008 resistance level might push the Bitcoin price up to the 65,084 level. While the support level remains at around 60,0048 levels.

On the 4-hour timeframe, Bitcoin has formed a bullish engulfing pattern that’s supporting a buying trend. While the leading technical tools like RSI and Stochastic are supporting a bullish trend in Bitcoin, So it’s not just the fundamentals that are supporting a buying trend in Bitcoin, but also the technical side. "Bullyish bias" dominates over 60,704 and vice versa. All the best!


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