Daily Report – Bitcoin and Market Update (October 31 2020)
Middaily sessions have been forming relatively bullish distribution in the past days, which can be seen as the ascending movement with declining upside momentum in the range between 12.8k and 14k. Today’s middaily and daily close will also be a monthly close, which, if closed above 13880, is going to be highest monthly close ever for bitcoin. It’s unprecedented and significant event, which imo will confirm that bitcoin will reach new ATH. As much as ATH imo is inevitable, it doesn’t mean it will be reached in a single move or a day. As always, it takes steps and retracements on the way up. As this is a bull market, the corrections that happen on the way up, provide traders with buying opportunity. Momentum is unquestionably bullish, and on many higher timeframes it’s heavily overbought. Is this a safe buying zone then? Not until BTC momentum goes down below overbought area 80-100 on any oscillator. In reference to my Monday’s weekly complete report, this is short-term toppy area which would intensify selling pressure, so 90% of traders longing into 13.5-14k area will likely soon lose money. Please make sure to revisit my Monday’s report attached at the bottom of the report and necessarily my yesterday’s full length premium webinar, during which I explained in deep details the market scenarios. Key supports on which traders should expect bullish reaction are: 13000, 12480, 11730. Key resistances are: 14100, 14600, 15000.
Local market context shows that despite that peak raindrop closed as bullish (orange), its VWAP and volume profile of this raindrop suggest that the price essence of this breakout appeared to be 13.8k. That indicates that the breakout was fake and unconfirmed by volume and price. Volume profile of the momentum-declining part of the uptrend between 12685 and 14100. Local supports are 13430-13580, 13250 (MA50), 12685, 11800. These levels also serve as “safe” long areas. The lower the support, the better risk/reward ratio for longs. Once again, the in-depth scenarios were given on my Monday’s and Wednesday’s reports. Highly suggested you read it again.