Sat. Oct 16th, 2021

Bitcoin continues to rise with a recent break above the 50,000 price level. However, many investors are looking at Bitcoin removing 51K as the next hurdle. That said, if we expect Bitcoin to work better, we should take into account recent support levels, along with the volume patterns seen earlier this year.

For support levels, the 200-DMA is a major moving average at 46K. However, since Bitcoin has operated several times through the 200-DMA, the best current support level that remains is 44K from the 8/19 low. Although Bitcoin has been on an upward trend, there have been several small setbacks in the last month, each without any significant increase in volume. The volume has also been lower compared to the initial push towards the 50,000-kilometer price range dating back to February 2021.

Much of the decline in volume could be from months of consolidation that Bitcoin went through and therefore gave investors and institutions the opportunity to slowly load the currency. That said, if Bitcoin continues higher, it will enter a turbulent zone of 50 to 60 K. This can be difficult to achieve at the current average volume and will likely require large buyback gains to advance past resistance.

If buying does not accelerate, instead of entering volume of more purchases, it could be in the form of selling for greater volatility. However, this does not mean that Bitcoin would be sold completely. Instead, the purchase could go down, as seen at the beginning of the year, after a quick correction.


Follow Mish on Twitter @marketminute for stock selections and more. Follow Mish on Instagram (mishschneider) to watch daily videos in the morning. To see the updated media clips, click here.

Check out the latest news from Mish a Boom Bust i Make money with Charles Payne!


ETF Summary

  • S&P 500 (SPY): Small Doji Day.
  • Russell 2000 (IWM): 225 main resistor.
  • Dow (DIA): Attendance level 347. 356.60 high to clear.
  • Nasdaq (QQQ): 370 support area.
  • KRE (regional banks): You need to hold your 50-DMA to 64.40.
  • SMH (semiconductors): 271.79 high for cleaning.
  • IYT (transport): Support 248.88. You need to delete 255 and keep.
  • IBB (Biotechnology): Support 164.27.
  • XRT (retail): You need to have 97.
  • Junk Bonds (JNK) Observing the confirmed phase change on the 50-DMA 109.46.

Forrest Crist-Ruiz

MarketGauge.com

Deputy Director of Research and Education in Trading

Mish tailors

About the author:
Mish Schneider is Director of Business Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided information and financial education to thousands of people, as well as major financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, Dow Jones-owned MarketWatch named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of RealVision’s best selection of the year. Learn more

Subscribe to Mish market minute to receive notifications when a new post is added to this blog.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

Source link

Leave a Reply