BTC fell in the European session through the SMA 21 (56,250). At the moment of writing it was located below the strong resistance of 6/8 of Murray, showing a negative bias. It could continue its bearish movement in the next hours to the 3/8 Murray support located at 53,125. If the bearish force prevails, it may fall to the psychological level of 50,000 (4/8).
Since October 4, BTC has been forming the Ascending Wedge pattern. On October 12, we saw a sharp break below this technical figure which could be a bearish sign in the short term. As long as it remains below 56,250, this perspective could be valid and we can sell with targets at 53,150 and up to 50,000.
BITCOIN needs to stay above 6/8 of Murray and above the SMA 21 to return to the level of 57,000. In such a case, it may go as far as the psychological level of 60,000.
The capitalization in the cryptocurrency market is falling, as reflected by the Eagle indicator. On October 5, a decline in strength and volume began. Maybe, bulls expect the price to reach a key level of support such as 53,000 or 50,000 to place buy orders again and push the price up to 60,000. For this, we expect a technical rebound in these areas.
Our short-term perspective has turned negative. Only if BTC goes below 6/8 of Murray and below the SMA 21, then it will be an opportunity to sell all the way up to the level of 49,163 where the EMA 200 is located.
On the other hand, we expect the confirmation of the breakout of the Rising Wedge pattern to prevail and thus we could see BTC falling to the key support level of 50,000. A breakout and a daily close below this level will be the start of a bearish scenario and could fall to 1/8 of Murray (4,625), the price level last seen on September 30th.
Support and Resistance Levels for October 13 - 14, 2021
Resistance (3) 61,201
Resistance (2) 59,409
Resistance (1) 57,331
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Support (1) 53,461
Support (2) 51,669
Support (3) 49,592
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A Trading tip for BITCOIN for October 13 - 14, 2021
Sell below 56,250 (SMA 21) with take profit at 53,125 and 49,163 (EMA 200), stop loss above 57,150.
The material has been provided by InstaForex Company - www.instaforex.com