Bitcoin Technical Analysis October 18th

Bitcoin (BTC) gained significantly in the week of October 11-17 and was approaching a new all-time high. While the trend remains bullish, BTC appears to be nearing the peak of a short-term uptrend.

Weekly outlook

Bitcoin’s weekly chart shows that the trend is sloping up, which can be seen most clearly in the technical indicators.

BTC has yet to regain the ascending support line it previously broke. As long as this is not the case, price action cannot be considered bullish. This line is especially important as it has been followed by price action since the March 2020 lows.

However, technical indicators show a persistently bullish picture. MACD is in positive territory and increasing. His histogram is generating his first bullish momentum bar since early June (green icon). This means that the short term trend is moving faster than the long term trend.

The RSI is also rising and is above 50.

Finally, the supertrend line is bullish. This indicator uses absolute high and low prices to determine the direction of the trend. Since the BTC price is above this line, the trend is considered bullish (green circle).

BTC / USDT weekly chart | Source: Tradingview

Has Bitcoin reached a new all-time high?

The daily chart offers a similar bullish outlook. BTC moved above the USD 57,200 resistance area on October 14 and rose significantly the next day. This is the final area of ​​resistance before heading towards the current all-time high of $ 64.854.

Similar to the weekly timeframe, the technical indicators on the daily chart are also pointing up. The MACD is in positive territory and rising and the RSI is also rising and is above 70.

BTC / USDT daily chart | Source: Tradingview

Short term movement

The short-term wave count shows that BTC is on the fifth and final wave of an upward pulse. This means that a correction can be expected after the movement has ended. The number of long-term waves is also tending to increase.

The most likely target for the peak of the up move is between $ 63,250 and $ 63,850. This target area is found with the length of 1.61 wave one (white) and the length of 0.618 of wave 1-3 (black).

BTC / USDT 6-hour chart | Source: Tradingview

You can see the Bitcoin price here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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