1. Market Overview
By the end of the week, Bitcoin (BTC) saw a notable rise of almost 9.92%, closing at around $30,127.5. The price changed between $28,052 and $33,342 over the week. For the first time since mid-August, Bitcoin went past the $30,000 mark, hitting a high of $31,087 on October 23. This increase was driven by the growing excitement around a Spot Bitcoin Exchange.
At the same time, the SEC has been talking with Spot Bitcoin ETF issuers, suggesting that more big investors might be coming into the market. Recent CPI data showed a 0.4% increase from last month, causing a wait-and-see approach across the wider crypto market. Also, big Bitcoin holders significantly increased their holdings, buying over 11,600 BTC in less than a week.
In the market, there was balanced activity with neither buyers nor sellers taking over. The supply of Bitcoin increased a bit, going from 19.18M a year ago to 19.51M. On a larger economic scale, as of September 2023, the numbers were 104.6 for the U.S. Leading Economic Index (LEI), 110.9 for the Coincident Economic Index (CEI), and 118.5 for the Lagging Economic Index (LAG). Factors like inflation and economic growth are impacting Bitcoin prices. Specifically, the rising inflation might be pushing investors to see Bitcoin as a way to protect their money from losing value.
Looking at the broader perspective, Bitcoin is poised for potential upward movement as it surpasses the 30,000 mark and currently maintains a sideways trend within the range of 33,000 to 34,000. This positive outlook is reinforced by the approaching new year, typically characterized by bullish market sentiment, as well as the anticipation surrounding the SEC announcement regarding BlackRock’s spot Bitcoin ETF.
2. Weekly Candle Chart Analysis
Following a period of difficulty in maintaining a level above $30,000 over the last three days, a notable bullish momentum emerged on Oct. 23 (marked by the red arrow), driving Bitcoin's price passing the $30,000 mark.
The recent big rise in price pushed the Relative Strength Index (RSI) into the overbought area, hinting that the price might stabilize or drop a bit soon. If this drop doesn't go below $30,000, it shows a trend of buying during small price drops. There's hope among buyers to push the price above $34,000 once again.
3. Daily Candle Chart Analysis
On October 24, 08:05 UTC, Bitcoin (BTC) started at $33,999, up by 2.80% or $925. This is good news as BTC has gone past the tough spot of $30,000, showing a strong upward trend.
The moving averages (MA), which help predict price trends, are mostly pointing to a buy. This means they suggest the price could go up further. This buy signal is seen in many short-term and long-term averages, showing a lasting upward trend.
There's also a good amount of trading happening, which often means the market is strongly behind this upward move.
In short, with BTC moving past the $30,000 hurdle, and with positive signs from moving averages and good trading volume, things look positive for BTC. It's a hint that the price might keep moving up.
4. Trading Signal
Generally, if the price goes above $34,000, it could encourage a further rise towards $36,000 for the BTC/USDT pair. The potential to profit by taking a long position here is estimated at 80%, as it's expected that the sellers will strongly resist this level because going beyond the $36,000 resistance might push the pair closer to the $40,000 mark.
On the other hand, if the price falls below $30,000, it suggests traders are selling to secure their profits, which could further drop the price to the 20-day EMA level of $28,428. The potential to profit by taking a short position under these circumstances is estimated at 20%.
Long: When BTC price reaches 34,500
Short: When BTC price reaches 30,900
Leverage: This content does not involve any leverage usage. Users should determine their leverage based on their financial situation and their risk profile.
Short Take-Profit: $30,300
Long Take-Profit: $35,300
Short Stop-Loss: $34,550
Long Stop-Loss: $30,550
5. Trade Summary
We entered a long position at an entry price of $34,500. We utilized 50x leverage with a 1000 USDT margin.
Key details for our executed long position:
Entry Price: $34,500
Take-Profit Price: $35,300
Stop-Loss Price: $34,550
We made $1,160.87 in profit from our long position.
The information provided is for educational and informational purposes only. It is not intended as financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and trading or investing in cryptocurrencies carries inherent risks. Prices can change rapidly and unpredictably, and past performance is not indicative of future results. Before making any financial decisions or investments, it is strongly recommended that you conduct your research, consider your financial situation, risk tolerance, and consult with a qualified financial advisor. Any actions you take based on the information provided here are your sole responsibility, and we shall not be liable for any losses or damages incurred. Please be aware of the risks and make informed decisions when dealing with cryptocurrencies or any financial instruments.