Coach, call time out!
Momentum always swings.
The game of basketball is all about managing and responding to momentum. It's common to see a team go on a big scoring run early in the game and take a large lead. However, the opposing team will often call a timeout to regroup and then chip away at the lead by going on a smaller counter-run. These are retracements, the back-and-forth, both teams trying to go on a run ultimately knowing retreats and swings are inevitable. Markets work the same way. But it’s the broader conditions, the team’s talent roster or market fundamentals which ultimately determine the trajectory.
Stay in the game,
The Monthly Candle
As we turn the page to November's market action, we say goodbye to Bitcoin’s favorite month. The 2023 October candle has closed above the recent high and for now, retained its “UPtober” nickname. This is a bullish signal for the long term. However, it's essential to note the immediate impact on short term price action may be different.
Navigating Bitcoin's Resistance: Potential for a Retracement
Building upon our previous analysis, Bitcoin's ascent toward the upper limit of the upward parallel channel has encountered notable resistance. Should Bitcoin retrace from this point, there's a considerable likelihood of revisiting the $30K - $32K range.Lets dive into the shorter time frames to show why a retracement from this zone is probable.
Bearish Divergence and the Crucial $30K - $32K Range
As we zoom into Bitcoin's daily view, a noteworthy development emerges, adding confluence to the resistance encountered within the weekly channel. We observe a bearish divergence, a signal indicating a potential shift in Bitcoin's momentum. This divergence further reinforces the significance of the ongoing resistance.
In addition, on the daily chart, the $30K - $32K range is the next major support. If Bitcoin experiences a rebound, this range becomes a key zone to watch.
Bitcoin Market Cap
- 2.28 %
Disclaimer: The information provided in this newsletter is for educational and informational purposes only. It should not be construed as financial advice or a recommendation to buy, sell, or hold any financial instruments.