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.
Key Levels:
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $15,000 | $17,500 | BTC | $22,500 | $28,500 |
Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptos viz. Bitcoin, Bitcoin Cash, Ethereum etc. are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice.
