Bitcoin Weekly Outlook

Key Price Levels

  • Support: $11,114
  • Pivot Point (midrange): $11,368
  • Resistance: $11,794
  • Support: $10,626
  • Pivot Point (midrange): $10,947
  • Resistance: $12,000

Big Picture

Bitcoin remains above the long-term downward trend and is bouncing off the recent upward trendline
  • October is proving to be a very different month than September, a bullish month. During the first two weeks of the month, bitcoin has regained the 11k range.
  • Long-term, the bull run stands. Bitcoin extends its longest streak above 10k (82-days and counting). Notice how the price is following bitcoin’s upward trend.
  • Short-term, however, bitcoin is exposed to intrinsic and systematic risks since the relationship between equities and bitcoin intensifies.
  • Volume continues at low levels, but retail is beginning to show more interest in the crypto king. We are in desperate need of greater volume levels to power bitcoin’s engine.
  • Volatility continues to decrease, yet dry exchanges indicate lower liquidity and greater exposure to short-term abrupt price movements. Thus, a retest of $10,947 is likely if support at $11,114 doesn’t hold.
  • As long as bitcoin remains above 11k (10.6k if you want to be more conservative) we expect further gains driven by bullish momentum.
  • Risk is high and we expect it to increase over the following weeks with the upcoming US 202 Elections and Covid-19 induced lockdowns, so it is best to keep an eye on the following key levels:

Volume

Faded volume nodes (volume bars to the right axis) signal faster price action
The downward trend in OBV is halting bitcoin’s progress
Entities with a balance > 1k BTC are considered Big Whales

Volatility

Bitcoin’s volatility decreases due to greater general adoption and maturity of the crypto market
Less BTC in exchanges leads to lower liquidity and higher volatility
Increasing volatility in the near term

Support and Resistance Levels

As the Bollinger Bands expand, bitcoin is prone to deviate further from the mean
An increase in HOLDER Net Position Change leads to more accumulation and bullish sentiment
Bullish momentum persists, but bitcoin faces short-term selling pressure

Conclusion

Bitcoin trades within an upward trading channel (strong upward trend)

Trading Strategies

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Cointer

I’m Cointer a crypto enthusiast who likes to kick off the week with a weekly bitcoin analysis.