BTC - HODL STANDOFF : 🐮 vs 🐻

4 oct 2022

Hi Traders, Investors and Speculators

Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫

If you've follow the previous analysis, you'll now that we were watching the weekly close for Bitcoin. A Close UNDER the support zone would mean bad news for BTC and possibly more bearish price action. However, a close ABOVE the white resistance zone would increase the chances of more bullish price action for Bitcoin. The candle has not closed in either direction, instead it is still consolidating between the two ranges. Right now, from a candlestick analysis, we see two bullish candles trying to push for the upper part of the resistance, but this zone will be heavily guarded by the bears. The bulls will also need to defend this level equally hard, because if this support zone is lost 12K looms.

From a technical indicator perspective, we see high volume at this range but with little price direction. This can mean only one thing - the bulls and bears are canceling each other out / there is a near even amount of sellers and buyers. The question now, is who can hold out the longest?
It is also worth noting that there has been an increase in the SPY over the past 24 hours. There currently exists a 68% correlation between BTC and SPY , I wouldn't be surprised if Bitcoin follows the S&P 500 until it reaches it's 3.618 Fibonacci Retracement resistance zone.

A quick look at another technical indicator, the Super Trend, shows that from a higher timeframe, Bitcoin is still considered bearish. All considered, at this point it really is the ultimate standoff between buyers and sellers. This is a whale game right now, be careful with leveraged trading !


_______________________

📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍

We thank you for your support !
CryptoCheck