Bitcoin Technical Analysis – October 18, 2019

The Bitcoin (BTC) inched higher on Friday, increasing the price to more than 8000.0, following a key economic release concerning the retail sales excluding fuel. The technical bias might remain bearish because the Bitcoin (BTC) price printed a higher low in the recent upside move.

Bitcoin (BTC) Technical Analysis

As of this writing, the Bitcoin (BTC) is being traded around 8061.2, A support level is likely to come around at 7250.5, the 61.8% Fib level support ahead of 5312.2, the trend line support and then comes 3132.0, the low of December 14, 2018, which may prevent the price from falling below this level as shown in the graph below.

Talking about the upside, the price may hit resistance around 9528.8, an immediate trend line resistance level. Another resistance level is anticipated to come across around 11331.0 the 23.6% Fib level resistance and then 13855.2, the high of June 26, 2019, is the next resistance which might keep the price to stay below the said level as shown in the graph above.

US Retail Sales Release

The US Census Bureau has recently released stats with respect to Retail Sales ex-fuel. According to the the release, the figure for the month of October remained 0.2%, as compared to -0.3%,, during the month before, up beating the economist expectation which was -0.1%.

It is to be noted that the retails sales figure is an estimation of changes in sales of the retail sector across the country. However, it doesn’t include volatile items such as food and energy in arriving on the said figure just to remain unbiased. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending. A high reading is seen as bullish, while a low reading indicates a bearish market for the digital currency. 

Trade Idea

Considering the price behavior of the digital currency over the last couple of days, selling the Bitcoin (BTC) around current levels may prove to be a good decision in the short to medium term.