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Bitcoin Price Continues Bullish Trend

November 7, 2018 at 13:22 by Arathur Stephen

It seems the month of November is turning out good for the king of cryptocurrencies, Bitcoin. The digital coin started the month trading around $6,160 and then rallied to a monthly high of $6,515 on Tuesday. Overnight, the BTCUSD pair has maintained this high. What could have contributed to the surge?

Two Factors Behind Bitcoin Price Rally

There are two important factors for the new upward momentum of the virtual currency. First, after October’s consultative meeting between the SEC, CBOE, and VanEck, traders and institutional investors believe that there is a possibility that a Bitcoin ETF will soon gain approval. This is because the proposed ETF will be targeted at institutional rather than retail investors with a share price of $200,000, or 25 bitcoin per share.

The second factor is a technical one. Back in October, the price of Bitcoin was a little changed as it had a relatively dull month. As a matter of fact, October was the least volatile month in some years now.

In technical analysis, traders usually consider a prolonged period of low volatility as the calm before the storm. This is usually viewed as a sign that the commodity’s price will surge in either direction. However, if Bitcoin price rally continues, it will possibly test the important resistance level of $7,000.

Hublot Launches Bitcoin-Themed Watch

In other news, the luxury watchmaker, Hublot has announced the release of a new watch product in collaboration with Hong Kong’s Octagon Strategy. The company announced a new Bitcoin-themed watch to celebrates the ten years anniversary of the flagship cryptocurrency.

The latest edition of the timepiece, the Big Bang Meca-10 will retail at $25,000 and can only be bought with Bitcoin. As an indication of success, all the 210 watches manufactured, which represents the 21-million number of bitcoin to ever exist, have already been pre-ordered.

BTCUSD Price Technical Prediction

Bitcoin price was in a bullish trend on Tuesday. The virtual currency has continued the upward trend and it is likely to meet resistance at the $6,600 level. BTCUSD was range bound in that level since October 15. However, if the bulls are able to break the $6,600 level, the price will surge at the $6,800 level. BTC will resume its upward trend at the $6,800 price level.

Bitcoin price, as it is assumed, will most likely reach the highs of $7,400 and $8,000. Nevertheless, a trend line is drawn to evaluate the continuity of the bullish move at the lower time frame. In the meantime, the price is above the 12-day Exponential moving averages  (EMA) and the 26-day EMA which shows that the price is in the bullish zone.

Further, the Stochastic indicator is advancing towards the range of 60 and this indicates a buy signal and that the price momentum is increasing on the upside.

Moreover, the 4-hour chart shows that BTC price is in a bullish trend.  Bitcoin price was making a series of higher highs and higher lows on November 6.

Thus, if this movement is not disrupted, a bullish trend is obviously ongoing. On the flip side, the bullish trend could cease if the price breaks the trend line and the following candlestick closed on the opposite of it. For now, the bullish trend is on course.

Resistance levels: $7,000, $7,200, $7,400

Support levels: $6,400, $6,200, $6,000

If you have any questions and comments on Bitcoin today, use the form below to reply.

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