BTC/USD Daily Chart Observations 10/15/23
MA200 Resistance Challenge and Decline: Starting from the 9th of October, the price of Bitcoin began to decline after encountering resistance at the MA200. This marked a significant challenge as Bitcoin struggled to break and close above the MA200 during the period from October 1st through October 9th.
Hopeful Spring: Despite the MA200 resistance, there's a glimmer of hope in the recent price action. On September 11th, we experienced a significant drop, briefly falling below $25,000. However, in a notable spring-like move, the price swiftly rebounded back above the $25,000 level. This marked a critical low and a strong spring, an essential concept in technical analysis.
Higher Highs and Lows: Bitcoin then embarked on an upward trajectory, making a higher high above the MA200. The price pulled back but established another higher low at $26,500, showcasing its upward momentum.
Two Possible Scenarios: The current situation presents two distinct scenarios:
Bullish Scenario: The price respects this higher low and manages to break above the MA200 and the $28,000 resistance, forming a higher high. This would be a bullish sign.
Bearish Scenario: However, there's also a bearish possibility. The price structure resembles a potential head and shoulders pattern. An MA200 rejection or a drop below the previous shoulder's level at $27,500 could trigger a decline, testing support at either $26,000 or even $25,000.
Hopeful Spring: Despite the MA200 resistance, there's a glimmer of hope in the recent price action. On September 11th, we experienced a significant drop, briefly falling below $25,000. However, in a notable spring-like move, the price swiftly rebounded back above the $25,000 level. This marked a critical low and a strong spring, an essential concept in technical analysis.
Higher Highs and Lows: Bitcoin then embarked on an upward trajectory, making a higher high above the MA200. The price pulled back but established another higher low at $26,500, showcasing its upward momentum.
Two Possible Scenarios: The current situation presents two distinct scenarios:
Bullish Scenario: The price respects this higher low and manages to break above the MA200 and the $28,000 resistance, forming a higher high. This would be a bullish sign.
Bearish Scenario: However, there's also a bearish possibility. The price structure resembles a potential head and shoulders pattern. An MA200 rejection or a drop below the previous shoulder's level at $27,500 could trigger a decline, testing support at either $26,000 or even $25,000.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.