Trading Bitcoin: Price Analysis & Death of Libra

Daily

Bitcoin has been trading around $8.3k for the past few days as volatility is near non-existent. As a trader, it’s important to be patient and wait out a long sideways trend. Regardless of how boring price action may be, do not let it force you to make impulsive trades because it’s not worth it. Understand that price will eventually make a definite move.

On the daily chart above, Bitcoin is on a neutral green 1. The key indicator to watch for the momentum of the overall trend is the 200MA (orange). As of now, the 200MA (orange) is still acting as resistance above price. If the bulls are to regain momentum from the bears, they first must break above the 200MA resistance level. Until that occurs, Bitcoin remains in a no trade zone from $8k – $8.5k. Price can break in any direction, however, the trend is leaning roughly 60% bearish.

4 Hour

The 4 hour chart is on a red 2 of 9 candle. Price is being squeezed between the 50MA (grey) and the 128MA (green). Currently, the 4 hour chart is entirely neutral.

Death of Libra

Last Friday, regulators struct a death blow to Facebook’s cryptocurrency project Libra. While the outcome of the project still remains in question, some of the largest members of the Libra association have withdrawn. PayPal was the first major corporation to withdrawal from the organization on October 4th. Others include Visa, MasterCard, Ebay, Mercado Pago, Booking Holdings, and Stripe. It would never be in the US Government’s interest to surrender control of their currency to a tech giant. When a centralized entity attempts to gain power by creating their own currency, the government is going to shut them down if they have a single point of failure.

Conclusion

Price is still boring, stay patient and wait for a larger move. In order for price action to be bullish, Bitcoin must break above the 200MA (orange). For now, Bitcoin is in a no trade zone from $8k-$8.5k. Primary indicators continue to provide neutral-bearish signals.