Oct 10, 2022
VOT Research Desk
Technical Examination
The price of bitcoin has been steadily consolidating for more than two weeks with no indication of a directional bias. However, the release of Non-Farm Payrolls (NFP) on October 7 might set off a volatile event for BTC that would end its range constriction and establish a bias in one way.
The greatest traded volume level for 2022, often known as the “Point of Control,” or the price of bitcoin, is still over $19,157. (POC). The last post suggested that buyers are secure as long as BTC is above the POC; but, a breakdown might cause a severe fall to the next high-volume node around $15,551.
Beyond this floor of support, there are two critical levels around $13,575 and $11,989, where a macro bottom for BTC may materialize. On this three-day Bitcoin chart, not much has changed, but investors should pay special attention to the POC at $19,157 and the immediate support level at $15,551.
Although the aforementioned rationale could make the first prognosis for the price of Bitcoin appears pessimistic, investors should view this likely drop to $15,800 as a chance to stockpile BTC and other crypto currencies at a discount. On the other side, if selling pressure increases due to escalating geopolitical tensions and deteriorating economic conditions, the price of bitcoin might drop to $15,800 and never rise again. The optimistic thesis outlined above will be refuted if this downturn forces BTC to convert the $15,551 support level into a resistance barrier.
Market players should be ready for a probable drop to $13,575 and $11,989 in such a scenario.
Before Bitcoin price starts a run-up to cover the CME gap, stretching from $27,365 to $28,740, a rise in purchasing pressure at this level that results in a U-turn would be the finest buying opportunity.
These price discrepancies in Bitcoin develop as a result of the weekend trading stoppage at the Chicago Mercantile Exchange (CME). Therefore, another important factor that initiates a reversal at $15,800 might be a rebalancing of these inefficiencies.
