Bitcoin Analysis: Week of November 1, 2021
Last week we talked about Bitcoin looking a bit overbought but not having broken down yet.
I noted that shorts were off the table for me and while some aggressive traders probably got short term setups coming in, price chopped sideways throughout the week and we’re sitting in pretty much the same spot we were last Monday at around 61k. So far today the price action is a Doji on the daily candle and I think that’s a good sign of current indecision in the market.
Price is stuck in a “too late to buy, too early to sell” location and I really don’t see the opportunity for putting on any new swing or position trades. Bitcoin has come a long way on its run up to a new all time high and going through a cooling off phase makes sense to me. Momentum indicators continue to point to the downside and today we’re starting to see a potential bearish moving average cross so I’ll be watching that closely. A confirmation of the cross would signal bearishness for me, but it’s also likely we just chop back and forth until another bullish drive can set itself up. I’m still in the “cautious, but pullbacks are buying opportunities camp.” My gut tells me this bull market is not over yet but we shall see.
If we can see a nice dip I think that the 56k level looks interesting as it’s the 38.2 fib retracement as well an AB=CD Harmonic PRZ.
While Bitcoin is looking a little boring this week I’m seeing some interesting charts in alt coin land. BAND, BAL and OGN are some names that look good so check them out and let us know what you think.
As always, Happy Trading
Kevin
