Bitcoin Trading Analysis & News - 2nd November 2017 [10.28am GMT]

Bitcoin News & Updates

Bitcoin is currently trading at a record $7050 (BTC/USD) and broke through the anticipated $7000 earlier this morning. There appears nothing to be stopping Bitcoin right now, with the upcoming Hardfork and the changes that have been made to mining, despite there being some doubts, it seems to have not tempered any desire for Bitcoin.

As to reasons why this current huge Bull run, could have more to do with S.Korea and the desire for the coin reaching nearly fever pitch, with the opening of a new exchange called Bitthumb.com. Bitthumb.com saw 46% gains in the exchange in one day. Given also that S.Korea is one of the most technologically advanced countries in the World, and there being an almost cultural desire for tech and gadgets. Could the desire for the coin in their local market, be driving this surge? What happens when that runs out?

Bitcoin Analysis

Currently trading at $7050, clearly broke through the trend line resistance and eerily hasn't formed any meaningful points of support since from that break on the daily. There are some weaker supports on the hourly/15 min which have been placed on the daily chart at $6931 and $6619. These are likely to be very weak, and unlikely to stop any strong pullback, which I need to discuss in a moment. The nearest strong daily support is from when it broke from resistance in the trend on the top line at $6091. The RSI and Stochastic are very close to being at points of resistance, where we have seen pull backs previously.

Points of concern; We are seeing huge bull run, and at some point there is going to be a draw down as people take profits. Considering the S. Korean exchange is likely fueling this current run, there is a chance we may see a pull back and some take profits, but it seems many are just seeing the profits they are making and holding on. Volume isn't massively high. Technically, in many ways, were this say a FOREX chart, everyone would be expecting a correction, a pull back down to a support as those that got in take profit. However, as we are all learning, Cryptocurrencies are on a path of their own, but it would be foolish to believe that analysis is futile and simply enjoy the ride. This same thinking was behind every single bubble we've seen before. My feeling is that this current bull run is driven by the S.Korean exchange fueling it - being a very tech savvy country and a wealthy one too. Technically we are due a pull back. Trouble is there is no real strong support, so where will it land - at the 60/15 mins supports I noted, given the strength of any retracement, those are unlikely to support it. Which means the next is the daily, from when it broke the resistance / trend line. Who says we don't live in interesting times!

** DISCLAIMER ** The information provided is my own analysis and should not be taken and is not given as any form of financial or trading advice. Any trade, investment or decision based from this information provided to you, is as is and I cannot be held responsible for any decisions you make from this information. DO NOT RISK what you cannot afford to lose. Trades can result in losses that are more than your initial stake. Seek proper training and paper trade before you use real money. Should you be interested in Technical Analysis, please look at my other articles on them.