Technical analysis update: BTCUSD (17th October 2021)

BTCUSD reached high of 62 944.94 USD while several technical indicators started to flash warning signals. First, breakout at 48.8k USD and then at 53k USD occured in very fast and unnatural motion which suggests that these price levels were most likely manipulated with goal to lurk new investors into the market. Second, volume is way lower than in previous rally that took Bitcoin to all time high and professional investors are selling their holdings into hands of retail investors. Third, several technical indicators signal that price is currently overvalued. We change our stance from bullish to bearish .

Similar setup is available in Bitcoin futures (BTC1!)

Technical analysis
Stochastic is bullish. MACD is also bullish, however, histogram started to decline slightly. Price deviated too far from its 50-day SMA . RSI left overbought territory and penetrated 70 points which suggests that price is elevated and due to correct.

BTCUSD - daily chart with 50-day SMA and volume.

It is easily observable that volume is considerably lower than in previous uptrend.

Support and resistance
Short-term resistance sits at 59 603 USD. Short-term support appears at 52 956 USD while Support 1 is at 48 834 USD. Support 2 sits at 39 573 USD while major support lies at 28 600 USD. Major resistance coincides with all time high at 64 895 USD.

Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Commento:

"Short-term resitance" is supposed to be "Short-term resistance". There is typo.

Trade attivo:

Commento:

BTCUSD continues to trade above short-term resistance (which now acts as short-term support) we depicted in our last chart. We will observe whether Bitcoin manages to hold above this support area and whether it will manage to overcome its previous all time high. Such scenario would force us to change our stance back to bullish. So far there was no explosion in price despite BTC ETF coming to life. Investors should be cautious within following days as it is likely that volatility will present itself.

Commento:

Idea was updated in the following post: