Bitcoin News & Analysis (BTC/USD) 3rd Nov 2017 [10.00am UTC]

Bitcoin News

Bitcoin soared once again yesterday to yet another high $7500, currently trading at the time of writing this article at $7438. It seems the hunger and desire for the Worlds most valuable cryptocurrency is not abating. Despite there being uncertainty with regards to how the price will hold with the changes and the Hardfork on or around the 16th November.

The SegWit2x Hardfork as it is known, has the potential of creating two Blockchains, even though it's actual purpose is to simply update it. There are even a new hints of a new kid, or kids on the block - Bitcoin2x which some are calling it, could be born from the potential split. Combine that with the financial institutions now seriously considering their own, with the CME Group looking to launch their own Cryptocurency futures product later this year. The institutions are waking up and taking notice.

All of this creates uncertainty and a degree of in fighting, yet none of this is affecting the price of Bitcoin. Perhaps then it's the belief that the Hardfork will create free money and there is of course no guarantee of that.

Bitcoin Analysis

The daily chart is almost next to useless for analysis of a chart such as Bitcoin. All we are seeing are dailing strong bull runs and this isn't telling the whole story and it certainly isn't making those that are just trading the daily aware of what's going on within the intraday - where all the action happens. Therefore, we are using the more telling 15 min chart, that shows more activity and more of what was going on and what could happen today.

During yesterdays trading it hit a high of $7346 and immediately profits were taken causing a sudden pullback, landing at $6807. This became the trading range for most of the day, causing a good amount of choppy trading. By early morning UTC, Bitcoin broke out of the new resistance and is currently trading on a support, that was the resistance, this support of $7346 will form the basis from where we are likely to see further gains. We saw a high of $7500.

$7500 is an interesting high for it to reach and draw down from. Usually solid numbers such as 8000, 9000, 9500 etc, act as emotional barriers to traders. They have a set price in mind, usually around these whole numbers which tend to play out in trading. 7500, appears to be one here. The good news, is that when they break, the market becomes very bullish. Most of the time in trading they take quite a lot of effort to do so. However, this is Bitcoin!

Therefore, we have a support at $7346, the RSI / Stock are not under any pressure as they were at the time of writing yesterday's article. The key thing to look out for is a break in the $7500, then follow the pressure being applied on the RSI/Stock for a draw down.

** DISCLAIMER ** The information provided is my own analysis and should not be taken and is not given as any form of financial or trading advice. Any trade, investment or decision based from this information provided to you, is as is and I cannot be held responsible for any decisions you make from this information. DO NOT RISK what you cannot afford to lose. Trades can result in losses that are more than your initial stake. Seek proper training and paper trade before you use real money. Should you be interested in Technical Analysis, please look at my other articles on them.