The price of Bitcoin continued with its bullish rally after breaking and consolidating above the psychological level of 50,000. Since then, BTC reached the high of 55,684. Now it is trading above +1/8 of murray and very close to +2/8 of murray that is an extremely overbought level that suggests a high probability of a technical reversal.
Investors should expect a BTC correction in the coming days, as it is below +2/8 murray. So, a decline is imminent towards the support of 21 SMA located at 51,113 if the bearish strength prevails up to the support of the psychological level of 50,000 located at 8/8 murray.
On the other hand, if the price of Bitcoin continues to decline and consolidates below 8/8 of murray, a drop is expected to the key level of the dynamic support of the 200 EMA located at 46,409.
The oscillator of the eagle indicator yesterday touched the level of 95 in the 4-hour chart. This represents an imminent technical correction and BTC could fall to the immediate support at 51,113 level of the SMA of 21.
The eagle indicator remains above a bullish channel. The break of this channel could be a bearish signal for BTC, as it would indicate that the market is losing momentum and a trade volume is decreasing.
The short-term outlook for Bitcoin is seen on the positive side. The 200 EMA, which is now located at 46,409, is giving this optimism to the market. Any correction towards this level will be seen as an opportunity to continue buying BTC.
Support and Resistance Levels for October 07 - 08, 2021
Resistance (3) 56,749
Resistance (2) 56,250
Resistance (1) 54,541
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Support (1) 53,125
Support (2) 51,446
Support (3) 48,416
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Trading tip for BTC for October 07 - 08, 2021
Sell below 53,125 (+1/8) with take profit at 51,113 and 50,000 (8/8), stop loss below 54,500.
Sell if pullback 56,250 (+2/8) with take profit at 53,125 and 50,000 (8/8), stop loss below 57,500.
