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BTC/USD Forecast: $6,800 is a key upside level

  • The BTC/USD had a roller coaster week and ended on top.
  • A collection of developments was mostly positive for cryptocurrencies.
  • The technical picture is improving but Bitcoin needs to break above downtrend resistance.

The price of  Bitcoin  had a bad start to the week, but things quickly improved. Bitcoin Cash, that forked out of the primary digital coin back in 2017, enjoyed a boost from the Bitmain IPO in Hong Kong. The successful listing of the firm that holds BCH sent all coins higher.

JP Morgan, one of the largest banks, is moving deeper into the blockchain technology. The Quorom is based on Ethereum, but Bitcoin also gained. Is the period of consolidation over? Many crypto doubters are now finding investment in cryptos attractive.

In order to attract mainstream investors, an Exchange Traded Fund will be needed. The SEC is not rushing to take a decision anytime soon, but when it does happen, the moves could be massive.  To understand more about ETF’s see:  Bitcoin ETF explained: 9 questions and answers about the critical crypto catalyst

Another positive development came from Google. The tech giant that previously announced a ban on crypto advertisements, is now taking baby steps to allow such ads in the US and Japan. Contenders will undergo a lengthy process, but this may be the first step to broader acceptance.

Get 24/7 Crypto updates in our social media channels: Give us a follow at  @FXSCrypto  and our  FXStreet Crypto Trading  Telegram channel


 

BTC/USD Technical Analysis – Downtrend resistance is critical

BTC/USD technical analysis October 1 5 2018

The BTC/USD is currently trading above the 50-day Simple Moving Average, a positive sign, but we were here before, not that long ago. The $6,800 level is key. The level capped the pair earlier in September and is also where the downtrend resistance line from July meets the price at the time of writing. Breaking higher is crucial for further upside moves.

Momentum has turned positive for Bitcoin but the Relative Strength Index is not going anywhere fast. The 200-day SMA is around the $7,400 level which is a high resistance line.

In between $6,800 and $7,400 we find the round number of $7,000. Just above, $7,150 capped the BTC/USD in late August and $7,200 provided support when it traded on high ground.

$6,600 was a line of resistance in mid-September and serves as a support. Further down, $6,300 was a swing low earlier in the week. $6,200 provided support in mid-August and $6,050 was the flash crash low from earlier in the month.

The  Forecast Poll of experts  provides interesting insights.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.