Bias for Bitcoin (BTC) – Ranging
Resistance Levels – $6800, $6900, $7000
Support Levels – $6100, $6000. $5900
BTC remains in a range-bound market on the long-term outlook. The past two weeks have been an indecisive moment for the cryptocurrency which direction it would love to go. The absolute market control was neither with the bulls nor the bears. The week just ended was started with an inverted hammer at $6586.70 above the two EMAs which was an indication of the bears returned. The bearish pressure did drop BTCUSD to a low of $6462.90 on 25th October.
Attempts by the bulls to stage a comeback was rejected by the bears at the 50-EMA on 24th and 26th October when BTCUSD was up at $6626.30 and $6597.40 respectively in the resistance area.
The stochastic oscillator is in the oversold region at 19%, and its signal is pointing down which favors the bears continued dominance in the days ahead coupled with the price below the two EMAs an indication of strong bears pressure.
BTC is in consolidation and trading between $6700 in the upper supply area and at $6250 in the lower demand area of the range. A breakout at the upper supply area or breakdown at the lower demand area is imperative. To flow with the trend, traders should be patient to allow this to take place before taking a position.
