Daily Report – Bitcoin and Market Update (November 10 2021)
The middaily chart is continuing to show local consolidation and intraday shakeouts typical to pre-ATH levels. It’s liquidity hunting to shake out weak hands, inexperienced traders and over-leveraged futures traders.
For all the reasons I mentioned in my Mondays market report and exclusive video report, BTCUSD is extremely strong both on the technical and onchain side. After bullish Monday’s daily close with new ATH, this is already enough of technical confirmation for the upcoming 70k and 80k marks imo. Closing the day through 68k adds to the upwards momentum and ease at which bitcoin is going to overcome the following resistances.
Anchored Volume-Weighted Average Price trendlines (aVWAP) are showing off significant technical levels depending on the actual time scope the trendline accounts. The main support levels hence are as follows:
65412, 62810, 58576, 48665, 45052. The further down the price sequence, the less likely those levels are to be tapped in the short timeframe. Only unpredicted FUD event, news or a military conflict black swan can change that and take bitcoin this low. Highly unlikely but it doesn’t mean one should not account for risks in the game.
Bollinger Bands showed a very powerful BTCUSD breakout with abnormal strength and volatility on the technical side. Volatility breakout should take it at least into 72.2k territory, while it’s not really aiming to stop there.
Also, the pennant pattern breakout targets 85-90k area and Im quite certain we’ll visit these regions in the next few weeks. Highly expected. For that let me bring again the “roadmap” for the next months:
1) $BTC ATH in hours – check.
2) Institutional + retails FOMO – processing.
3) Tech giants->crypto payments – processing.
4) #Bitcoin pulls 150-200k peak
5) BTC reversal day 40-50k drop
6) Ultimate altseason
7) Bear market 2022
8) BTC bottom $10-20k (85% decline, MA200 1W) Dec 2022
MTF chart is showing unprecedented strength again. New ATH has just hit as we speak. Beautiful MA20 tag on the lower candle shadow to flush over leveraged liquidity off the market. I think $70,000 target is temporary and imminent. Temporary as it’s only a momentary stop on the run past 80k.
Bollinger Bands are showing local volatility-based resistance to be at 70k to be precise. Another reasoning to expect 70k to act as a special number. Also because it’s a round number and round numbers in technical analysis have “special” powers in the price discovery territory. The larger the milestone and the upper in the price chart BTCUSD reaches, the stronger the volatility and reaction get at the level. Bollinger floor shows up at 62k and in case of intraday FUD news from FED or media this level is expected to work as a support.
A 4h session’s close through 68.5k is an early signal for upcoming 70k levels. Once it closes through this level, BTCUSD should gain upwards momentum to empower 70k and beyond rallies.
On another note, here’s yet another confirmation on the volume side. The volume profiles show clear demand built upon 65.8k area of the range highs. This is strong confirmation of the area being reclaimed
Last Monday I wrote:
“Hourly chart represents typical sideways movement where head and shoulders pattern occurred to be fake/failed as it most often does for bitcoin. In my trading career I’ve found H&S patterns to more often fail than unfold in the expected direction.”
This stands still and real obviously. The failed head and shoulders is already performing well in the opposite direction. On top of that, it’s all already well confirmed by the market itself. The range highs are reclaimed as a new demand territory, backed additionally by MA50 orange curve.
MA200 at 63.5k is yet another support right beneath the orange mean in case of unpredicted news.
Unless that external factors comes to disrupt the charts, traders can expect 76,000 USD targets which is a range breakout target.
Bitcoin: Net Unrealized Profit/Loss
NUPL is not yet caught up with the price trends on the intraday basis, which confirms the price is rallying already even without a proper engagement of the onchain and network alone. This confirms technical strength and imagine what BTCUSD pulls off if only the onchain joins and catches up with the price. The entire upside potential coming out of it is supposed to be realized and additionally back the upcoming rallies.
Currently at 0.65 and it’s still showing local bullish “divergence” where the price has made new highs and the onchain metric has made lower high so far. It’s bullish.
Bitcoin: Number of Active Addresses (168h MA)
Yet another confirmation of the same bullish “divergence” and narrative of the onchain lagging behind the price increase and demand influx. No new highs on the onchain side and higher highs already on the price. It shows underlying strength of bitcoin pointing out further upside potential. It’s worth monitoring that for future divergences as when they occur to show off weakness after massive rallies, they may be early reversal signals. Besides, our 14 Day Free Trading Congress starts in 2 days, this Friday. More than 18,000 participants have signed up in just a bit over 4 days. The demand is ground-breaking and FOMO is real about the congress. If you want in for virtual camp with tons of free workshops, trading sessions, interviews, webinars, onchain masterclasses with literally the biggest legends, institutional investors, hedge funds managers and top players of this industry combined with premium membership for free 14 days, then rush immediately to sign up. Join with the link below before it starts.