Bitcoin Technical Analysis – October-16-2023


In our comprehensive BTCUSD analysis, we meticulously explore both the latest news surrounding Bitcoin and the technical intricacies of this digital gold.

Market Fluctuations and Trader Engagement

Bloomberg – Bitcoin (BTC) was on the brink of hitting $28,000 early Monday, but it pulled back. The reason behind this movement was the growing optimism among cryptocurrency enthusiasts about the potential launch of a significant Bitcoin exchange-traded fund (ETF) in the U.S. in the near future.

Bearish positions in Bitcoin futures led to traders losing around $27 million within a few hours during the Asian morning trading session. Open interest, which refers to the number of outstanding futures contracts and can be an indicator of market liquidity, increased by 6.7%, demonstrating enhanced trader engagement over the previous 12 hours.

Bitcoin’s Future and Major Tokens’ Growth

Anthony Scaramucci, a well-known cryptocurrency investor and the founder and managing partner at SkyBridge Capital, expressed in a podcast that he anticipates Bitcoin will eventually grow into a $15 trillion asset in the coming years, describing it as “more valuable than gold.”

Bitcoin was at the forefront of gains among major tokens, with Solana’s SOL and Tron’s TRX also experiencing growth. SOL saw a surge as a bankruptcy estate for the struggling crypto exchange FTX, which possesses billions worth of SOL, staked nearly 10% of its holdings, alleviating concerns of a token sell-off.

Alternative Tokens on the Rise

In terms of other alternative tokens, Bitcoin Cash (BCH) and Bitcoin SV (BSV), both forks of Bitcoin, saw increases of up to 11% while Rollbit’s RLB tokens, associated with a crypto casino, experienced a surge of up to 14%.

In other news, Big Time’s BIGTIME tokens, associated with a crypto game, saw a staggering 350% increase shortly after being listed on the prominent exchange Coinbase (COIN). However, analysts at Delphi Digital expressed their view that the token is an “extremely risky asset to be trading at this time.”

Unraveling the Mystery and Market Presence

Analyst Joseph Lloyd highlighted some concerns related to the game and emphasized that it is incredibly difficult to find any reliable information on what BIGTIME tokenomics entails. He mentioned that there is no vesting schedule, no mention of allocations, and no solid information on the current circulating supply (this will be updated when available). The only known fact is that so far, approximately 5% of the total supply has been airdropped to players and is currently being traded on the open market.

Bitcoin Technical Analysis

Recently, we observed a notable event in the BTCUSD market trends. The BTCUSD broke out of the bearish channel, surpassing the $27,237 pivot with a strong bullish candle in the 4-hour chart. As of now, it’s testing the $27,952 resistance, indicating a potential shift in market dynamics.

btcusd analysis

BTCUSD Analysis – Chart by TradingView

Divergence in RSI Indicator: A Closer Look

Our BTCUSD Analysis wouldn’t be complete without examining the technical indicators. Upon scrutinizing the BTCUSD 4-hour chart, we noticed a divergence in the Relative Strength Index (RSI) indicator. Both the RSI and the stochastic oscillator are hovering in the over-bought zone. This observation is crucial as it often signals a potential reversal in market trends.

Given the current state of overbought conditions, our BTCUSD Analysis suggests a cool down in the bullish momentum. It’s likely that the bears will step in to correct the recent rise of BTCUSD. This correction phase is a common occurrence in financial markets after a significant price increase and is often seen as a healthy sign for long-term market stability.

The Ichimoku Cloud Test: What’s Next for BTCUSD?

We anticipate that BTCUSD might test the Ichimoku cloud before further rise. The Ichimoku cloud is a collection of technical indicators that show levels of support and resistance, as well as momentum and trend direction. It’s an essential tool in our BTCUSD Analysis toolkit.

BTCUSD Analysis: Final Thoughts

In conclusion, while BTCUSD shows promising signs of growth, it’s important for investors to keep an eye on these technical indicators and market trends. As always, it’s crucial to do thorough research and consider multiple factors before making investment decisions.

  • 16 October 2023
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