Taking a look at the Bitcoin market at the start of a new month, October. Last month we saw some bullish momentum in the market, however there was still a lot of selling momentum over all. A nice bullish channel has formed that I will use as guide moving forward this week.
There are quite a few candlestick formations inside the channel, bullish and bearish, this is confirmed by both the momentum indicators.
Should momentum turn in favor of the bears this week, the short term support at $6500 – $6400 will get tested and depending on the buying fever from the bulls, this could trigger a small sell-off that will take us back to previous support levels, around $6000 – $6200.
Should momentum turn in favor of the bulls, there will be a battle to get up to $6700 which is the resistance zone I am keeping a eye on. Higher risk traders could try to trade the $6500 – $6700 range (longs & shorts), should momentum turn bullish.
Safer long trade setups on the Bitcoin market would be to wait for consolidation above the longer term bearish trendline that I illustrated on the chart. Longer term resistance for me is at $6800, and I expect some fomo should prices push above $7k. Safe trades.
- This reply was modified 4 months, 2 weeks ago by CheesePuff.