Bitcoin: a channel to higher grounds

10月21日

Although BTC was struggling to choose the trading side during the last three weeks, still, the previous week brought some breakthroughs, revealing current market sentiment. As per some analysts this final break was impacted by the increased odds that the US Presidential candidate Donald Trump might win the US elections in November. The market reacted in a positive manner considering his pro-Bitcoin notes in the election campaign. However, this narrative should be taken with a precaution, considering that the US government is also increasing spending, adding new cash flow to the markets, mostly reflected in the US equity markets. So, the real reason for BTC moves is most probably somewhere in between.

BTC started the previous week around the level of 63K and swiftly moved to the higher grounds. The highest weekly level reached was $68,7K, where the coin was testing the 68K resistance line. At the same time the RSI reached a clear overbought market side, from where a short reversal might be expected in the coming period. The moving average of 50 days started its modest convergence toward the MA200, but there is still space between two lines, in which sense, a potential cross is still on hold.

BTC had a strong move to the upside during the previous week, which was a positive for this coin, as it showed the clear path where it is headed within the following period of a few months. Still, considering that it reached a clear overbought market side, it is increasing probability for a short term reversal in the coming week. Previously, the level of $ 65K has not been tested at all, hence, BTC might spend a week ahead by testing this level. Still, a return toward the lower grounds is currently not indicated on charts.