Bitcoin: technical analysis, October 17, 2023

Hello from the crazy crew at Altcoin Wonderland!!! It’s Tuesday, October 17, 2023, and it’s time to look at what’s next for Bitcoin, which obviously affects the whole crypto market.

Bitcoin weekly chart

As we can see, it’s another week in which Bitcoin closed below the 200-week moving average, and the current week promises to be interesting, as we may close it above the MA200, which sits at 28.2K. That would signal a further rise toward 30–32K.

The 28.2K level also coincides with the resistance of the ascending triangle, which likewise hints that Bitcoin will probably reach 30K–32K. However, if it lost the lower black line of the triangle (trendline), that would very likely mean a drop down to 25K, since that is also where the middle of the weekly price range lies.

The reason for the recent price spike is not so much the fake news about the approval of a Bitcoin spot ETF as global liquidity and its rise last week, which means that even without that news we would most likely have reached 30K. As the charts below show, bank liquidity in China and the US increased.

Bitcoin daily chart

On the daily chart we can see that Bitcoin is moving in a narrower price range, with 25.2K as the range low, 28.1K as the high and the middle at 26.6K. So our best options for entering any kind of trade would be to go long above 28.2K, ideally above 28.8K once we hold there for at least a day, targeting a move up to 31K. Otherwise, if we fall back into the range below 28.1K, shorting would be better in terms of risk/reward ratio.

That’s it from me. Keep going strong, folks, and be careful! Always use risk management, stop losses and proper position sizing. Happy trading! Thanks a lot!

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