Daily Report – Bitcoin and Market Update (October 26 2022)
The middaily chart has recorded a significant breakout to the upside for the BTCUSD price.
The CTF Trailer breakout signal was triggered with breaking over 19720 USD. Moreover, there has been enough follow-through to confirm the breakout is valid, at least in the short-term outlook.
For now, the CTF Stop is at 19809 USD; below the threshold, the bulls may lose the upper hand again. So far, the bulls are dominating the short-term change.
However, traders should pay attention to the larger context and the medium-term outlook, which remains neutral in a sideways move within the 17500-25000 USD area. As long as BTC moves within the range pattern, it lacks an actual trend, and bouncing between the said levels can continue with potential whipsaws on both sides.
The MTF chart has noted an abnormal volatility signal.
Based on the ATR breakout and the BPRO Momentum Bands, BTCUSD has confirmed the breakout – at least, from the short-term perspective.
As BTC is heading toward the 21000 USD level, the short-term momentum principle may continue to stretch the prices to the upside because trends tend to persist.
The main support area now rests at the 20000 USD level.
Finally, the bulls have got a bit more relief feelings from the market, it seems.
As the sentiment index has improved sharply up to 33 points on the scale, the cognitive dissonance and regret bias can start to prevail among traders, sooner than later.
Overall, the “fear” conditions are still on. Despite the short-term outburst, it is recommended not to over invest in a sudden spark of optimism.
Trend following strategies tend to return the best results.
Hope it helps.