CRYPTANALYSIS - HOUSE VIEW ON KEY ALTCOINS
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68. TECHNICAL ANALYSIS: BTCUSD (Published: 01st Nov, 2017)
Analysis
- BTC/USD kept rallying recently and broke to a record high at $6400 today
- A bearish divergence is formed on the RSI indicator when price moves to a higher high but RSI moves to a lower high, implying a bearish signal
- The same bearish signal is also shown on the Stochastic indicator, and the price has been to the overbought zone multiple times
- These indicators signaled that the price has been moving too fast and there should be a correction soon
- $6100 has been a decent support level, so it is the expected target for the correction
Suggestion
- It would be risky to buy now as the price is more likely to fall, hence traders should wait for the correction to “buy the dip” at around $6100
- More sophisticated traders can also look for shorting opportunities with proper risk measures
