Cointree Crypto Market Update - October 7th 2020

October 7th, 2020

Market update for traders

Jump to the beginner's version

Is Bitcoin ready to make a big move? We saw another week of low volatility where the largest crypto by market cap ranged between $14,500 & $15,000 AUD - the holding pattern is likely due to events in the US that spooked markets across the board.

We can see that Bitcoin is being squeezed into an ever shrinking corner of an ascending triangle pattern formed back at the start of September. The $15,000 level appears crucial and Bitcoin is having trouble getting above this key resistance area. Of note, BTC now sits on top of the key 50 EMA on the daily charts but if BTC continues sideways, the likelihood we see a breakdown from the ascending triangle grows.

The sense is that the market is building towards a big move. This is the time for bulls to flex their muscles and put bears to the sword above $15,000, pushing the market higher on the back of renewed confidence in US Stocks. If $15,000 can be breached with confidence, then the low $16,000’s will be a firm target. Bears will be watching for a fake-out above this level and look to push price down to the base of the triangle at $14,800.

Alt-coins have had a moment as BTC goes sideways...Zilliqa was a big mover up 32%, Zcash up 15%, and Monero was up 18% over 7-days.

Read our full market update here.

Market update for beginners

Is Bitcoin ready to make a big move? The largest crypto by market cap appears to be in a holding pattern, ranging between $14,500 & $15,000 AUD, likely due to events in the US that spooked markets across the board.

We can see that Bitcoin is being squeezed into the corner of an ascending triangle pattern formed back at the start of September. The $15,000 level appears crucial and Bitcoin is having trouble getting above this key area. BTC sits atop of key Moving Averages here but the possibility that we see a breakdown from the ascending triangle remains.

The sense is that the market is building towards a big move. This is the time for buyers to flex their muscles and push the market higher on the back of renewed confidence in US Stocks. If $15,000 can be breached with confidence, then the low $16,000’s will be a firm target. Sellers will be watching for weakness here though and look to force price downward to the base of the triangle at $14,800.

Alt-coins have had a moment as BTC goes sideways...Zilliqa was a big mover up 32%, Zcash up 15%, and Monero was up 18% over 7-days.

Read our full market update here.