Crypto Community Celebrates Bitcoin White Paper Day – Price Analysis, 2 Nov 2020
On October 31st, the cryptocurrency community celebrated Bitcoin White Paper Day:
Exactly twelve years ago (on October 31st, 2008), Satoshi Nakamoto posted to a cryptography mailing list a 9-page long document called "Bitcoin: A Peer-to-Peer Electronic Cash System" that has significantly impacted the global financial system since then.
Moreover, for these twelve years, Bitcoin has been able to become an important financial asset, which some people (e.g. well-known Bitcoin bull PlanB) even claim is the best performer for 'this year, last 5 years, and last 10 years':
Last week, during which the Bitcoin White Paper marked its twelfth anniversary, coincided with a very positive period for the price of the cryptocurrency. On some exchanges, BTC surpassed $14,000 per one digital coin – the highest level since January 2018 (the beginning of the bear market).
However, the current week starts with a slight price correction. At the time of writing, according to Coin360.com, one Bitcoin costs €11,384.36 (-1.49%), one Ethereum – €329.10 (-0.15%), and one LINK – €9.53 (+0.57%):
Source: Coin360.com (Daily crypto market performance)
Now let's have a look at the price charts of the major cryptocurrencies against the euro.
October turned out to be a very positive month for Bitcoin from a price perspective. In the monthly time frame (MN), BTC/EUR formed a solid Bullish Engulfing:
However, we would like to highlight that Bitcoin has already reached a very crucial psychological resistance level equal to €12,140. This level comes from the local high in December 2017. As can be seen in the chart below, back in December 2017, €12,140 was the closing price of the monthly bullish candlestick. In January 2018, it was the opening price of the monthly bearish candlestick. After that, the bear market started.
Furthermore, during the price rebound in 2019, BTC/EUR hit that resistance level in June and couldn't surpass it because the bears regained control over the market and immediately sank the price.
That's why we think that the level of €12,140 is a relatively strong resistance level, and Bitcoin bulls will face fierce resistance from the bears.
Nevertheless, we would like to outline that the existence of resistance in front of Bitcoin doesn't mean that there is a bearish signal. In the daily time frame (1D), BTC/EUR is still within the trajectory of the Rising Wedge, which indicates that the market is still bullish:
We believe that in the next couple of weeks, the price of Bitcoin will remain within the wedge.
Although October was a very successful month for Bitcoin, not all major cryptocurrencies recorded a solid price increase. For example, ETH/EUR formed just a small bullish candlestick in the monthly chart (MN):
The small bullish candlestick indicates that Ethereum bulls are encountering resistance from the bears.
That's why we estimate that, in the 4-hour chart (4H), ETH/EUR will continue to consolidate near the level of €320 per one digital coin, which is the level of the lower line of the Inverted Ascending Triangle:
There is a very interesting situation in the price chart of Chainlink. In the 4-hour chart (4H), LINK/EUR is approaching the lower line of the Ascending channel (uptrend):
If the price bounces off the line (bullish scenario), then LINK/EUR will resume the uptrend.
Conversely, if a breakdown occurs (bearish scenario), then LINK/EUR may sink to the level of the exit point (breakout point) from the Bullish Flag or approximately €7.20 per one digital coin.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.