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Technical analysis of BTC/USD for Oct 18, 2019
Crypto Industry News:
18 million Bitcoin is to be mined on Friday, which means that at the moment only three million Bitcoins remain to be mined.It is worth noting that so far 17,997,150 BTC has been extracted so far – according to the BitcoinBlockHalf data page – and the upper limit for the number of Bitcoins that will ever be encoded in the system is 21 million.
As the number of coins remaining to be secured by securing the Bitcoin chain is still decreasing, Bitcoin halving is also approaching. During the event, the amount of Bitcoins created with each new block will be halved.
BitcoinBlockHalf estimates that on May 14, 2020 – the date is uncertain given the bitcoin block time irregularity – the block reward will be reduced from 12.5 to 6.25 coins. The website also indicates that 85.7% of all coins have already been mined.
As the number of coins that still need to be extracted decreases, competition for them appears to be increasing. The Bitcoin hash rate has for the first time ever exceeded 102 quintillions.
Technical Market Overview:
The BTC/USD pair is still trading under the short-term trendline resistance and the trendline itself has been tested three times already. The move down has been initiated after the Bearish Engulfing pattern was made around the level of 38% of the Fibonacci retracement and since then the bears have been pushing the price lower and lower. Any violation of the level of $7,672 will invalidate the current Elliott wave scenario and make the whole corrective structure more complex and time-consuming.
Weekly Pivot Points:
WR3 – $9,781
WR2 – $9,248
WR1 – $8,711
Weekly Pivot – $8,198
WS1 – $7,675
WS2 – $7,127
WS3 – $6,590
Trading recommendations:
Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
