Bitcoin slows around key resistance denoted by the .786 retrace

13. Okt. 2021

The BTC/USD has held for some time around USD 57K

Price action is beginning to display signs of lethargy and sluggishness which usually brings bears out from hibernation.

Chasing price here regardless with buy/long positions is nothing "short" of reckless, pun intended.

Bitcoin loves flipping the GREEN D1 20 EMA (exponential moving average) during critical shifts in market structure - whenever above, it becomes support and the trend remains bullish so long as re-tests do not close below. Conversely, losing the D1 20 EMA usually precludes further selling down to another key MA, such as the 50, 100, or 200.

That is exactly what we're waiting for, a much-needed pull back to either of the major support levels staggered between USD 45K - USD 51K. A mix of key moving averages and fib level confluence places these zones as followed.

Local Support: 51K

1st Major Support: 48K

2nd Major Support: 45K

From there, our analysts will observe how BTC/USD closes around the key fib pivot levels and moving averages to determine if sell-side pressure can push lower. Should all major support levels break down then BTC/USD may even re-visit sub-30K USD.

For now, the macrostructure of Bitcoin is bullish but requires a short-term pullback. Closing sells around any of the zones mentioned above, should bulls step in hard, is the confirmation needed to buy the incoming pullback and flip long.

14. Okt. 2021

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