Bitcoin Weekly: Upper Resistance Challenged

Oct 8

Good afternoon my dear friend,

Bitcoin closed three consecutive weeks green in September and this pushed prices as high as the red descending trendline shown on the chart. Each time this resistance level is challenged, we see a continuation of the bearish trend, a down-move.

Immediately after the third green week, the proceeding week Bitcoin closed red, that's last week. The red candle last week removed all the gains from the prior week and pushed prices a bit lower than the weekly open.

This week, also red, we see an upper wick and the action happening at the session low. Based on candlestick reading, this is extremely bearish price action.

➖ We have the bearish signal of starting the month red.
➖ We now have a bearish signal as we start the week red.
➖ Challenging the descending trendline and seeing a rejection is also a strong signal that points toward lower prices next. Since March 2024, each time this trendline is challenged we see a major drop. The action we are seeing now and what we saw last week confirms this pattern.

We continue to see MA200 trading around $39,965. This level works as a magnet pulling Bitcoin's price toward it. We are looking at the weekly timeframe.

➢ Everything continues to point down.

I will keep you updated if there is any change.

While MA200 is the main support, this is not likely the last and final low.
It can take weeks before the low is in, or a little more than a month.

The next drop is likely the last drop of this major correction before we switch to bullish mode.

Thanks a lot for your continued support.

Thanks a lot for the well wishes and very decent messages in the comments section, this community is filled with intelligent, lovely and wise souls.

Namaste.