House of Cards

Crypto Compass 58

“Patience is bitter, but its fruit is sweet.” — Jean-Jacques Rousseau

• Following last week's fall from highs above $25k, BTC price has battled to maintain its position above the $26k support level. The Risk Signal has returned to an upward trend and is now in the 40s, confirming the volatile environment.

• This largely trendless market can be ascribed to a lack of liquidity and apathy from regular investors who are afraid to capitulate if falls rally below the $25k support level.

Figure 1: Bitcoin Risk Signal is a proprietary signal that gauges the amount of risk of a major drawdown in Bitcoin price.

• BTC's price failed to break through the $27.5k resistance and began a new fall. BTC fell below the $27k and $26.5k support levels, entering a bearish zone. It trades below the $26.5k mark and the 100 hourly Simple Moving Average. On the upside, immediate resistance is approaching $26.2k.

• A break and closing below the $26k mark might push the price much lower, possibly to the $25k level. However, October is often a very bullish month for BTC so a rally could be on the cards.

Figure 2: BTC's price evolution with Cipher B, RSI and ATR indicators.