Bitcoin had a strong start to the week as it caught a pretty significant bounce up to $63,700 after selling off below 60k over the weekend.
The rally was fueled in part by the bullish news that Mastercard partnered with Bakkt to allow its merchants to offer crypto services to their customers. Bakkt (NYSE:BKKT) stock also rallied hard on the news, up 235% on the day.
In other bullish news today, crypto saw record inflows into digital asset funds as $1.47 billion dollars of new money entered the space last week. This is likely due in part to last week’s launch of multiple BTC ETF products
From a technical analysis perspective, BTC ran up into new all-time highs last week on the ETF launch event and then sharply pulled back into the weekend before rebounding today. Price has been heading straight up for the entire month of October and is beginning to show signs of being overbought. While there’s no sign of major breakdown and nothing I would consider a short signal, there is a bearish MACD divergence confirmed suggesting it’s best to let price consolidate here and show us what the next move will be before putting on any new trades. Price has currently pulled back to the 12 period exponential moving average and has not been able to break below in earnest suggesting we are still very much in the bullish uptrend. For me shorts are off the table and I will be looking for a consolidation and then market structure signaling another move to the upside so I can entertain the possibility of new longs.
Good luck and happy trading!
Kevin
