After Bitcoin’s sell-offs on September 24 and 26, another bearish candle closes the third red month in a row. BTC is currently trading at $8,137 and still, there’s no sign of recovery after the fall on September 24.
There are two support levels protecting the coin for further fall. One at $8,000 and the second at $7,500. We could see further drops in price if the bulls are not able to reverse the damage seen at the end of last month.
What’s more, October has had a poor start for traders who looked to capture Tuesday’s rebound to $8,511. Prices quickly fell back to below $8,300 at about 02:00 UTC.
For Bitcoin margin traders it’s essential to have their trading accounts funded. They should be ready to enter a short or long position at the right time. There are two approaches that should work:
- The first one is to set pending orders at the price breaking points,
- The second one is to have a fast, reliable mobile trading app at hand to be able to adjust the strategy when crucial news appear.
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This 3rd month of losses has paved the way for further declines in price. There is a similar monthly pattern to what we say between February 2018 and October 2018. Prices seem to find a solid support base at about $7,780 with overall interest sliding. This can be seen by the limited price range and lower highs of the monthly candles over the last quarter.
There is a hope that sellers could tire by the end of the month since the total volume has seen a decline period-to-period. We will see if that theory comes to fruition in the next few days because historical data suggests that volatility tends to increase mid-month.
There is no counter-narrative to be seen in the weekly chart when we compare to the monthly chart’s bearish view. Momentum has reached its maximum under the RSI’s neutral 50 zone. This is a measurement of sellers and buyers over a specific period of a particular asset.
Further to this, the AO (awesome oscillator), which is another measure of momentum and market cycles, shows Bitcoin’s slow but steady decline as prices struggle to return to above $9,000.
Looking at the limited price range alongside the weekly trajectory, the bears seem ready to push prices towards the 50-period moving average at $6,700.
If prices were to rise above $9,400 and subsequently $9,800, this would help to reverse the recent developments in the market and build up confidence again for investors.
There’s one more reason for trading with SimpleFX in October. The app offers reduced spreads on all transactions. The traders, who make the most of the promotion will receive $500 cashback paid in Bitcoin.
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