BTC/USD, BTC.D, Technical Outlook, Edition #120 (06/10/2021)

Sleepless speculators toss and turn while optimism runs hot in trader sentiment 🔥 Read Q's break down of the New Moon excitement and save the Divergence Cheat Sheet for later 👇

Buyers howl as Bitcoin makes a spectacular re-entry to the Golden Zone

This Golden Zone is a liquidity band ranging from USD 50K – 53K.

Notice attempts to encapsulate the density of trapped positions 'qlustered' around the .618 Fibonacci retracement level. 

Entering the new lunar phase, Q muses on how tonight's New Moon extrapolates to the rife optimism in trader sentiment. 

Bitcoin, BTC/USD - Daily (D1)

Since the last Friday close, foolhardy bulls have carried Bitcoin's continuation and refused to take their foot off the gas ever since. 

Typically, this would not cause such a concern - if it weren't for the bearish RSI divergence occurring on the daily (D1) charts.

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Q guides the way with the market explorer's Divergence Cheat Sheet below...


Thus, a pullback from the Golden Zone (USD 50K - 53K) to USD 44k or the D1 200 MA (BLUE) at USD 45K may present itself as the ideal range for buyers to consolidate after cooling off. 

If successful, bulls may find the inspiration to gear up for an extension to at least USD 58K. 

Bitcoin, BTC/USD - Daily (D1)

Conversely, the bearish argument would designate this a retest or square up (double-tap) where bears feast on the succulent liquidity staggered around the .618 fib level. 

Bitcoin, BTC/USD - 4 Hour (H4)

Qluster analysts depict a forecast for this bearish retest above. 

Note that a sizeable red volume spike is requisite to puncturing through the local support around USD 46K. 

Either way, Q does not take this zone lightly and considers the merits of walking up stop losses to crystallise positions in satisfactory profits.

Further attention is made to the viability of hedging short while staying net long to lower liquidation price - or in some cases, exiting the market altogether. 

The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions 


Q's Conclusion

Bitcoin Dominance (BTC.D) has bounced hard from a double bottom at 40% market capitalisation (MC). 

Qluster analysts note the precarity of jumping into altcoins now - excluding primed setups belonging to the 'Top-50' ranked in MC. 

Bitcoin has led this rally since last week, and the BTC.D reflects this perspective. 

A pullback in BTC/USD may offer altcoins the opportunity to experience a relief bounce - although holding 43.37% support may give BTC.D leeway to break higher to around 46% MC. 

Bitcoin Dominance, BTC.D - Daily (D1)

See you again for the next update.

- q

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The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions