Technical Analysis of BTC/USD for October 26, 2023
October 26, 2023 8:24 am
Crypto Industry News:
The largest banks on Wall Street – Citi, Morgan Stanley, Goldman Sachs and Bank of America – found themselves in a difficult situation. They have reached their lowest levels since the banking crisis in March. Currently, their rates are even lower than then.
Citigroup experienced a decline of 14% since the beginning of the year, Goldman Sachs lost 13%, Morgan Stanley recorded losses of 16%. Bank of America, in turn, leads this disgraceful statistic with a decline of 23%.
The American economy does not give reasons for optimism for banks and stock markets, the situation on the cryptocurrency market is completely different. Currently, Bitcoin shows a strong correlation with major stock indices, such as the S&P 500 or NASDAQ.
In March, in response to the banking crisis, the price of Bitcoin increased significantly, and we are currently observing a similar situation. Over the past six days, the cryptocurrency has gained nearly 22% of its value, leading altcoins to rally. The total capitalization of the cryptocurrency market has already exceeded $1.244 trillion.
Although the losses of American banks could suggest benefits for crypto investors, the flow of capital to this sector is not exclusively related to the situation in the USA.
Recent news about the Bitcoin ETF from BlackRock, as well as the active activities of cryptocurrency whales, may also have a positive impact on prices. Addresses holding between 100 and 1,000 BTC have started accumulating even more over the past month, adding $1.7 billion worth of crypto to their crypto portfolios.
Taking all these factors into account, the cryptocurrency market currently has many reasons to be optimistic. However, if all other factors are removed from the game, increasing bank losses could prove to be a real blessing for the crypto world.
Technical Market Outlook:
The BTC/USD pair has broken above the last swing high located at $31,790 as the new local high was made at the level of $35,227. Currently, the market is consolidating the recent gains around the level of $30k and is getting ready to spike up again. The intraday technical support is seen at $31,790 and the intraday technical resistance is seen at $34,342. The next target for bulls is seen at the level of $37,142. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for BTC, however the market conditions are now extremely overbought on the H4 time frame chart, so the spike up might be the last one before reversal/pull-back.
Weekly Pivot Points:
WR3 – $32,658
WR2 – $31,572
WR1 – $31,127
Weekly Pivot – $30,486
WS1 – $30,041
WS2 – $29,400
WS3 – $28,313
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
The largest banks on Wall Street – Citi, Morgan Stanley, Goldman Sachs and Bank of America – found themselves in a difficult situation. They have reached their lowest levels since the banking crisis in March. Currently, their rates are even lower than then.
Citigroup experienced a decline of 14% since the beginning of the year, Goldman Sachs lost 13%, Morgan Stanley recorded losses of 16%. Bank of America, in turn, leads this disgraceful statistic with a decline of 23%.
The American economy does not give reasons for optimism for banks and stock markets, the situation on the cryptocurrency market is completely different. Currently, Bitcoin shows a strong correlation with major stock indices, such as the S&P 500 or NASDAQ.
In March, in response to the banking crisis, the price of Bitcoin increased significantly, and we are currently observing a similar situation. Over the past six days, the cryptocurrency has gained nearly 22% of its value, leading altcoins to rally. The total capitalization of the cryptocurrency market has already exceeded $1.244 trillion.
Although the losses of American banks could suggest benefits for crypto investors, the flow of capital to this sector is not exclusively related to the situation in the USA.
Recent news about the Bitcoin ETF from BlackRock, as well as the active activities of cryptocurrency whales, may also have a positive impact on prices. Addresses holding between 100 and 1,000 BTC have started accumulating even more over the past month, adding $1.7 billion worth of crypto to their crypto portfolios.
Taking all these factors into account, the cryptocurrency market currently has many reasons to be optimistic. However, if all other factors are removed from the game, increasing bank losses could prove to be a real blessing for the crypto world.
Technical Market Outlook:
The BTC/USD pair has broken above the last swing high located at $31,790 as the new local high was made at the level of $35,227. Currently, the market is consolidating the recent gains around the level of $30k and is getting ready to spike up again. The intraday technical support is seen at $31,790 and the intraday technical resistance is seen at $34,342. The next target for bulls is seen at the level of $37,142. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for BTC, however the market conditions are now extremely overbought on the H4 time frame chart, so the spike up might be the last one before reversal/pull-back.
Weekly Pivot Points:
WR3 – $32,658
WR2 – $31,572
WR1 – $31,127
Weekly Pivot – $30,486
WS1 – $30,041
WS2 – $29,400
WS3 – $28,313
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
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