In the early American session, Bitcoin has reached the psychological level of 50,000. Since September 30, it has gained more than 22% in a few days. Now it is facing resistance of 8/8 of murray which represents strong resistance. It is expected that in the next few hours there will be a correction towards the SMA of 21 located at 48,400. If the downward movement continues, the level of the EMA of 200 will be the key support and will give us a good opportunity to buy.
On October 1, BTC broke the wedge pattern that had given it a consolidation and then quickly rose above the 200 EMA. Now the price is showing signs of exhaustion and overbought levels. Therefore, we wait for a correction towards 45,600 before BTC continues with its upward movement.
A pullback and consolidation above the 200 EMA located at 45,600 assured the buyers to open long positions again. But this time, they may be targeting the barriers of $ 51,562 and 53,125 (+2/8 of a murray).
The eagle indicator is showing an overbought signal. As long as BTC remains below 50,000, there will be an opportunity to sell with targets towards the SMA of 21. If the downward pressure prevails and this level is broken, it will be a good opportunity to continue selling up to the 200 EMA around 45,600.
Only a sharp break and consolidation below the key level of 45,000 (EMA of 200) will set the stage for the bearish scenario, so the price would fall again to the psychological level of 40,625. If that happens, we must sell below the EMA of 200.
Support and Resistance Levels for October 05 - 06, 2021
Resistance (3) 52,552
Resistance (2) 51,562
Resistance (1) 50,990
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Support (1) 48,437
Support (2) 46,875
Support (3) 45,312
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Trading tip for BTC for October 05 - 06, 2021
Sell below 50,000 (8/8) with take profit at 48,400 and 45,600 (EMA 200), stop loss above 51,150.
The material has been provided by InstaForex Company - www.instaforex.com