Mid-Week Musings #003

Ever since the China FUD, Bitcoin (BTC) has gone down as far as $40,000.00 on the daily close but have managed to keep above the black line at $40,545.42 below. In almost a self-fulfilling prophecy, BTC jumped almost immediately as the clock struck 12am on the 1st of October and have continued scaling up to the present price of $54,380.00.

BTC Daily Chart — 7th October 2021 @ 3:17p.m.
BTC Daily RSI and MACD Charts

As shown above, the daily RSI has been rejected at the 70 point mark as BTC headed towards being overbought while the MACD remains an upward trend. It is pertinent to note that the BTC Dominance reached 45% and have gone down slightly to the present value of 44.83%. What usually (and I do expect as well) happens next is that altcoins may bleed out as the market fomos into BTC before BTC dominance eventually comes down.

BTC Dominance Daily Chart

As for the BTC Dominance, I expect BTC to try to tuoch 47.50 dominance and we will see if it can breakout from the .236 fib or if it will continue its downward trend which would be good for altcoins.

Closing

If you’re in a long since sub $40k, I would look to close or take substantial profits from BTC at $57.5k — $58k as that would be the next resistance at the .786 fib. Upon that we may see a challenge of the previous ATH but failing that we should see a pullback to $47,000.00 region.

Till then, stay safe and trade responsibly.

Follow me at: https://twitter.com/Mikeshashimi

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Mikeshashimi

Mikeshashimi

Blockchain & Cryptocurrency for the Average Guy