Technical Analysis

BTC/USD Analysis – October 20, 2021

By LonghornFX Technical Analysis
Oct 20, 20213 min

Bitcoin Price Prediction

Bitcoin's price began a significant rise just above the $62,000 resistance level. BTC has broken above the critical $63,000 resistance zone and is now trading just above the 100 hourly simple moving average. It even broke through the $63,500 resistance level and reached a new multi-week high of $64,448. It is currently correcting lower and trading under $64,000. An immediate support level is near $63,700. BTC is approaching the 23.6 percent Fib retracement level of the uptrend from the swing low of $61,320 to the high of $64,448.

On the hourly timeframe of the BTC/USD pair, a crucial bullish trend line has formed with support at about $62,800. On the upside, an early resistance level is approaching $64,000. The first significant resistance is located near $64,250.

The shares of the first bitcoin-linked exchange-traded fund in the United States soared in their trading debut on Tuesday. The ProShares Bitcoin Strategy ETF (BITO) increased 4.8 percent to $41.94.The fund monitors CME bitcoin futures, or contracts gambling on bitcoin's future price, rather than the cryptocurrency itself.

As a result, traders in the ETF can anticipate the price and success of the shares to deviate from the price of bitcoin directly. This isn't ideal for existing investors; many of them are long-term investors in cryptocurrencies and had expected an ETF that would follow physical bitcoin that traders could buy and hold.

As per Coin Metrics, the price of bitcoin increased by more than 4% on Tuesday to $64,206.51, down around 1% from its all-time high of $64,899 on April 14. Bitcoin futures are up roughly 4% as well. Will Hershey, CEO of Roundhill Investments, told CNBC that the launch exemplifies the ETF industry's tremendous development.

BTC/USD Intraday Technical Levels

Support Resistance

59484.49 62858.77

576672.49 59162.0

56110.10 64421.0

Pivot Point: 66233.0

BTC/USD - Technical Outlook

On Wednesday, the BTC/USD is exhibiting a strong bullish trend at 63,963. The BTC/USD has broken through the ascending triangle pattern at 62,959 on the 4-hour period. This level is now likely to act as a support for the BTC/USD. Furthermore, Bitcoin's immediate support is at 62,959 levels. A break below this level may cause Bitcoin to fall to depths as low as 62,100 and as high as 61,175 USD.

On the upside, the major resistance is located around 65,125 levels. A break of this level might continue the buying momentum all the way to the 66,847 mark. The RSI and Stochastic indicators are pointing to a strong rising trend in Bitcoin. Furthermore, the violation of the rising triangle pattern supports the BTC/USD values. Thus, the bullish bias dominates over the 62,959 level on Wednesday. All the best!


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