21.10.202112:48 Forex Analysis & Reviews: Trading plan for Bitcoin on October 21, 2021

Exchange Rates 21.10.2021 analysis

Technical outlook:

Bitcoin finally broke above the $6,5000 mark to all-time highs around $67,000 on Wednesday. The crypto currency produced a regious uptrend from March 2020 lows around $40,000 and rallying through the $67,000 highs. Traders are advised to lock in full profits in long positions initiated earlier and remain on the sidelines for a while.

Bitcoin might produce a corrective drop towards the $48,000-49,000 zone at least, before resuming its rally. It is also possible for the crypto to drop towards $40,000 before finding support again. It is suggested to refrain from going short since a meaningful top and a reversal sign is still not there. It is alos possible to hold long positions or book profits and stay on the sidelines.

Bitcoin faces potential resistance now as it hits all-time highs around the $67,000 mark. Strong price support on the daily chart is seen around $40, 000. Price may show bearish divergence on the RSI on he daily chart (not shown here), hence Bitcoin remains vulnerable for a pullback at least.

Trading plan:

Target is to hit above $65, 000. Lock in profits and remain on sidelines until next analysis.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Oscar Ton,
Analytical expert of InstaForex
© 2007-2022
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