Bitcoin price was consolidating as it trended lower since the September 6 swing high. Interestingly, this downswing resulted in the formation of a bullish pattern that broke out on October 1. The resulting rally pushed BTC through overhead barriers. However, the momentum needs to clear one more level for a continuation of this uptrend. Salvadoran president Nayib Bukele has announced that local consumers can enjoy a $0.20 per gallon reduction in petrol prices when paying using the government-backed Bitcoin wallet which supported the bullish stance of Bitcoin. Bitcoin price set up two distinctive lower highs and three lower lows since August 26. Connecting these swing points using trend lines reveals the formation of a falling wedge. Bitcoin after being supported by 38.2% fibo retracement level - managed to break above 50% fibo and sustained its gains at  48,000.

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

From the current market structure and bullish momentum built on BTC - is going to be targeting 61.8% fibo level at 50,800. On the other hand the 50,000 benchmark is also a strong resistance that the bitcoin needs to break in order to acheive 51,000. A bearish pullback to 44,893 seems likely, a failure to hold above will signal buyers’ weakness. In such a case, Bitcoin price could venture lower and retest 42,900. Either way, a retracement to the 44,893 stable support floor. Here, the buyers can make another comeback but target the 50,000 and ]53,000 barriers this time.

BITCOIN TANGLING WITH THE NECKLINE

Oct 04 2021