The Crypto markets are facing difficulty to embark on a strong sustained recovery as the US dollar nears its multi-year high and US stock markets are close to their June lows. This shows that sentiment remains negative and traders are not interested in taking risks on their portfolios. The U.S. Stock markets fell sharply on October 7 following the release of September nonfarm payroll numbers. Meanwhile, Bitcoin is on track to end the week with marginal gains of around 2%. This is the first indication that selling pressure may be easing and traders may not be ready to divest their positions at lower levels. However, for a sustained recovery, Bitcoin needs some support from the return risk-on sentiment. Until then, volatile range-bound action is likely to continue.
At the time of writing, BTC was trading at $19,478.
BITCOIN continues to trade sideways in a range from $18,500 to $20,500 with declining volumes forming an ‘Ascending Triangle’ pattern. Flat Moving Averages and an RSI around 50 indicate a neutral stance for the asset. BTC has a strong support zone from $18,000 to $17,500 ($17,622 Previous Bottom) whereas $20,750 and $22,500 are acting as strong resistance levels. Breakouts on either side of these levels with good volumes will further decide the trend.
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