Bitcoin — 60k Is Doing A Good Job, So Far!

4 oct

Bitcoin continued to consolidate between 60-61k yesterday. So far, 60k turned out to be a strong support level. Each dip to that level was bought up quickly. At the time, we see many altcoins bouncing nicely today. However, I don't think we are out of the woods yet and remain very cautious. Here's why:

‣ Bear Flag Pattern: Bitcoin continues to build a bear flag pattern. Bitcoin could go as high as 63k in this scenario without invalidating the bearish structure. Make sure to watch these lines!

‣ Decreasing Volume: A decreasing volume supports the bearish structure, which you definitely don't want to see after hitting bottom. However, right now, price and volume signal a strong divergence!

‣ Middle East Escalation: We might not have heard any breaking news from the Middle East during the last 48 hours. Nevertheless, it's only a matter of time. As soon as Israel launches a counterattack, Bitcoin and the crypto market will respond.

‣ Whales Not Buying: Whales are not yet rushing in as you would expect at the bottom. Check yesterday'S post for details.

Therefore, as much as I love to see the market bouncing, I remain bearish for the moment and am convinced that the price will go lower before moving higher.