24.10.202109:25 Forex Analysis & Reviews: Bitcoin analysis for October 24, 2021.

Bitcoin as expected from our previous analysis has broken the bullish short-term channel and is now challenging the $60,000 support level. Despite making a new all time high above $65,000, the RSI provided a bearish divergence and we noted that bulls needed to be cautious as a pull back was justified.

Exchange Rates 24.10.2021 analysis

Blue lines - bullish channel (broken)

Black lines- Fibonacci retracement levels

Bitcoin is vulnerable to a move lower towards the 38% Fibonacci retracement. Having broken the bullish channel it was in has provided us with a bearish signal. This does not mean that the recent high is a major top. However in the near term price is vulnerable to the downside. A pull back towards $55,000 or even $50,000 is justified in order for bulls to gather momentum by creating a higher low before the next attempt to break above $65,000.

Exchange Rates 24.10.2021 analysis

Red lines - weekly RSI bearish divergence

On a weekly basis price is forming a reversal candlestick pattern and the RSI is providing a bearish divergence. Although both are not sell signals, they provide a major warning of what could come. Bulls need to be cautious and patient. The closer the weekly close will be to $49,500, the more bearish the candlestick will be. Bulls do not want to see a long upper shadow in the daily candlestick.

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

Alexandros Yfantis,
Analytical expert of InstaForex
© 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
Can't speak right now?
Ask your question in the chat.