Bitcoin Will Trade Inside a Range Throughout October, Says Technical Analyst

Since reaching a high of $13,764 on June 26, the Bitcoin price has been trading inside of a descending wedge. While the price movement was initially very volatile, that has not been the case recently. For the past 22 days, the price has traded inside a range of only 10 percent while hovering between $7800-$8700.

The Bitcoin price looks likely to continue consolidating until the end of the month, after which a breakout looks likely. The price has strong support all the way down to $7000, where it may possibly make a bottom.

Trading inside a range is otherwise known as consolidating. Bitcoin has been known to make these types of movement, especially after a rapid upward/downward move.

Full-time trader and technical analyst @cryptomichnl outlined the descending wedge the price is currently trading in along with several minor support and resistance areas.

Additionally, he outlined a possible price path — in which, after consolidating for the entire month of October, the price will break out. @cryptomichNL believes that, after the breakout, we will “crush the 9.3k resistance level.”

We also discussed the possibility of a November breakout here.

Let’s take a closer look at the price movement and determine if that is likely.

Wave Count

Since reached the aforementioned high of $13,764, the Bitcoin price has been on an extended correction.

Based on its price movement, we believe this is a 3-3-5 correction — which has transpired throughout two A-B-C waves (the 3-3- part of the correction) and is currently finishing its final downward move, which is transpiring in five waves.

It looks as if the Bitcoin price is in the fifth and final wave.

Judging by the chart, BTC should make a bottom around $7000, inside the minor support area…

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