FX.co ★ BITCOIN Analysis for October 20, 2017

Bitcoin has been quite corrective after the recent impulsive bullish bounce off the $5,000 support area. The bullish trend is expected to push the price higher towards $6,000 price level but ahead of the upcoming November Bitcoin Split the price seemed to be correcting itself in the run to the upcoming volatility in the market. Bitcoin has been gaining more demand recently because of the recent positive bias in the market of the Cryptocurrency whereas countries like Russia and Canada are measuring its efficiency and CoinBase to allow people to buy Bitcoin from American banks as well. Every positive review and news about Bitcoin is bullish for the cryptocurrency, increasing the demand for Bitcoin which encouraged further bullish momentum for it.

As for the current situation, the price is still above the Kumo Cloud support area, currently being held as a support by dynamic level of 20 EMA and a recent cross of Tenkan and Kijun. The Chikou Span is now trying to break above the corrective candle structure whereas a break above this area will lead to further impulsive bullish momentum with a target towards $6,000 price level. As the price remains above the $5,500 and $5,000 support area, the bullish bias is expected to continue further.

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.