Bitcoin price shows have fallen sharply by 4% on Friday, October 7. After experiencing congestion near $20,000, the BTC price was sharply rejected and has since fallen in free-fall fashion.

Bitcoin price currently auctions at $19,411. The peer-to-peer digital currency has shown a considerable uptick in volume during the current sell-off., The Relative Strength Index has fallen into extremely oversold territory and printed a bullish divergence as well.  displayed several bearish divergences during the summer. Additionally, the bears have established a breach through the 8- exponential moving average and look to test the  21-day simple moving average just below $19,407

IF market conditions persist, the 18,000 zone could be a key target for bears in the market during October. Due to the extremely oversold reading on the RSI, the bulls should be able to show some retaliative force in the coming days, presumably back into the $20,000 price level. Traders should keep their eyes on the pullback to see if an additional opportunity to short will present itself. At the current time, placing a short entry would be ill-advised.

Therefore this thesis remains neutral with an overall bias that BTC will rotate near the moving averages and recover part or all of the lost value during the last-minute sell-off throughout the weekend After a definitive pullback, the potential for more decline could be on the table targeting $18,000. Such a move would result in a 5% decrease from the current market value. We are monitoring price action and liqudity zones for more concrete setups and entry points. 

Bitcoin not in the mood of taking an impulsive exit soon

Oct 07 2022