Technical analysis update: BTCUSD (6th October 2021)

2021년 10월 6일

BTCUSD surprised us with its abrupt move up. We have changed our stance from neutral to bullish. We will observe whether short-term support at 52 956.47 USD will hold in case of a selling pressure (if short-term support is broken we will question whether this recent move is a bull trap). However, we have to note that while very bullish breakout above previous peak has taken place today we remain very cautious due to condition of several technical indicators. We will also look for second divergence forming on hourly time frame which would suggest that price rise is losing steam.

Technical analysis
RSI is bullish and nears overbought level. We will observe whether RSI manages to penetrate 70 points mark while we expect this to be accompanied by further price rise. However, we have to say that such phenomenon is often accompanied by peak in price and thus we remain cautious. MACD crossed into bullish zone and continues to build bullish structure. DM+ and DM- suggest bullish trend is prevailing at the moment. ADX continues to reset from previous trend and thus becoming neutral in value.

Support and resistance
Short-term support sits at 52 956.47 USD. Closest support below that is at 48344 USD. Another two support levels can be found at 39 573.21 USD and at 37 300 USD. Major support level is at recent low of 28 600 USD. Closest resistance appears at 59 603 USD and major resistance sits at all time high of 64 895.22 USD.

Here is our previous thought from 4th October 2021:

Here we noted that we were sceptical of recent price move up but we layed out two possible scenarios for setup that was taking place. Price has penetrated resistance at 48 834 USD and moved into bullish territory.

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.