There were a million reasons to be ambivalent about Bitcoin’s price action and, as expected, it is having trouble breaching the overhead resistance posted by the $8.5k-$8.7k price range.
As of right now, the price is right at the overhead resistance posed by the EMA-9 (according to where it was when we last took a look at Bitcoin on October 1st).
Let’s Take a Look at the Indicators Again
Let’s take a look at the EMA-50 and EMA-200 on the for Bitcoin:
These two marks are going to be challenging to break across, to say the very least.
The most recent candle forming is at the beginning of the for October 10th, 2019, so that should be kept in mind.
However, from what we can see thus far, it appears that the overhead resistance posted by the EMA-200 has largely halted Bitcoin’s progress moving forward (especially in light of the previous candle ), where the Bitcoin rallied from $8.1k all the way up to $8.7k at one point, representing a gain of +7.5%.
That gain signifies Bitcoin’s biggest daily gain since August 5th, 2019.
Balance of Power RSI
The is through the roof (all the way through to the north side of our overlay), which means that there is extreme buy pressure on Bitcoin right now.
As to whether that will translate to continued increases/gains remains to be seen.
Relative Strength Index (14)
The (14) for Bitcoin has finally signaled green for Bitcoin (buy signal; private indicator only for people that are members of Zerononcense).
Also, we can see a definitive upward swing from the oversold region for Bitcoin .
Those are two positive things, especially when they can be observed on the . We’ll have to keep that in mind.
As we can see, the (custom indicator) transitioned from red to blue on September 28th, 2019, and began heading upward.
Zerononcense Double Guppy Channels
As we can see the candle for Bitcoin is at the very top of this channel.
What Does That Mean?
That the price is at a high for the session (session = lookback; lookback = 5 periods).
Moving Average Convergence Divergence
Well below the Histogram (where the bars are on the chart). When the crosses the Histogram, that deems Bitcoin as being in a ‘bullish’ pattern.
However, there has been a buy signal emitted as of a few periods ago (September 29th/30th, 2019) with increasing divergence.
See below :
That is , undoubtedly.
is at a maximum. Since this period is still in motion, we can’t predict whether the will draw down or not.
Remember that the is more of a short-term indicator.
Underlying support is at $8.5k.
As long as the price holds and the indicators of continued price increase…well, increase, then there is a solid chance that Bitcoin re-tests $8.7k once again in the near future.
There may be a slight period of consolidation, during which time bulls should probably pray that the price does not fall below $8.5k.
If it does, then $8.3k is a likely result.
Placing a gamble here from the price point is a bit risky as the R/R does not present a huge benefit vs. risk for traders if using the known support / resistance points to guide their R/R placements.
However, in the interest of being fair and throwing our hats in the wrong (per usual), here is an R/R below:
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