From Decrypt · By Jose Antonio Lanz
In brief
Bitcoin trades just below $83,000, above both the short-term and long-term moving price averages.
Momentum is neutral, with room to run in either direction.
Here's how the next price move could break, and why.
Crypto markets rebounded on Tuesday with a near 2% jump across the board, rising to $2.8 trillion total market capitalization, and Bitcoin once again testing key levels.
For traders and investors plotting their next moves, here’s what to watch:
Myriad: How high will Bitcoin go? Click to make your prediction.
The Crypto Fear & Greed Index, a 0-to-100 gauge of market mood, reads 51, a neutral reading between fear and greed, up three points from yesterday when it registered 49 points.
The macro backdrop is still tense. Brent crude oil trades near $110 a barrel amid attacks on tankers in the Strait of Hormuz, and expensive oil feeds inflation by raising the cost of fuel and goods. Higher inflation raises the odds that the Federal Reserve keeps rates high or raises them again, which pushes Treasury yields above 5%. Higher yields pull money out of risk assets like crypto, and the Fed next meets on October 27 and 28.
Bitcoin trades at just below $83,000 on the daily chart, holding above both of its key moving averages after a bounce from the $80,000 area. It bounced in the confluence of the average price of the last 50 days (also known as EMA50) and the natural support of its most recent bullish movement.
Bitcoin price data. Image: Investing.com
The 50-day exponential moving average, or EMA50, gives more weight to recent prices, and that sits at $80,702.8. The 200-day EMA, a gauge of the long-term trend, sits at $76,123.1. With Bitcoin’s current price above both, and the EMA50 line above the EMA200, the trend structure remains bullish.
The Relative Strength Index, or RSI, measures how fast price has moved on a 0-to-100 scale, and that reads 53.34. Readings above 70 suggest overbought conditions and below 30 oversold, so 53 shows momentum that is neutral and slightly positive.
The nearest resistance is $87,371. Bitcoin has to close above it on the daily chart to confirm that the bounce is turning into a new leg higher.
Support is layered below. The first floor is $80,433, which lines up closely with the EMA50 at $80,703. The next is $76,140, almost exactly on the EMA200 at $76,123. Below that, the chart marks $72,671, $69,202, $64,263 and $57,972.
BitcoinBTC · USD$82,828−0.41%Oct 13Oct 15Oct 17Oct 19Oct 20$83.7k$82.6k$81.4k$80.2k24h HighHigh$83,24924h LowLow$81,155VolVol$1.1BMarket projectionsOdds by MyriadThis weekAbove $82,000Above $82k62% chance→Buy Bitcoin with USDTPowered by JupiterPrice data by CoinGeckoCoinGeckoMore Bitcoin news and projections →In the bullish scenario, Bitcoin pushes through $87,371 with rising momentum. The RSI would move toward the 60s, and price would have room to run before the chart shows another obstacle.