Bitcoin Market Review – 5th October 10PM BST

All right folks, we should be live!

If you can just give me a quick audio check in the chat that you can hear my voice okay and that you can see my screen, just give me a quick confirmation. Thank you all right, excellent, good to be back. It’s the 5th of October 2023, the time is 10:00 p.m. BST in the UK. I’m your host Trader EXO once again, and in this stream, we’ll cover Bitcoin. Hopefully, this time we’ll keep it nice and short, okay, 20 minutes or so, and we should be wrapped up. As always, before we proceed, I just want to say a special thank you to Prime X BT once again for sponsoring the live streams. It’s a platform that I’ve been using for the best part of 2 and a half years, and I’ve been partnered with them for the best part of two and a half years as well. As always, anything said in today’s video is not financial advice. It is just my view of the market. And don’t forget, you can get up to a $7,000 bonus deposit if you use my referral link in the description at the end of the video. You’ll see the link in the description. And don’t forget to hit the like and subscribe. And as always, I don’t have any paid groups or services. Everything I do for you guys is free on YouTube, and the majority of the posting happens on Twitter, although I have cut back significantly from posting on Twitter too much now that we’re in Q4. So let’s kick off straight away. First things first, let’s start on the high time frame.

High Time Frame Analysis

Last week, we talked about the price being around 26.2-26.3, and I mentioned a few key points. First, I talked about the fact that this is not really an area where you want to be shorting because you are into a level of support. I also mentioned that we should see a push back up into the moving averages between 27.1 and 28.1. Finally, I discussed the possibility of a pattern forming, with a shoulder-head-shoulder formation indicating a potential breakdown. However, I emphasized the importance of focusing on the current range-bound price action and not getting too caught up in long-term predictions.

Looking at the weekly chart, we can see that price is still trading within the established range that has been in place since March. This indicates a pure trader’s environment, where short-term trades are the focus. Holding onto positions for an extended period is not advisable unless you are looking to hold spot positions. The key level to watch is the 25k level, as long as price remains above this level, the range-bound price action is likely to continue.

Moving Averages and Key Levels

On the weekly chart, we wanted to see a push above the 12 and 21 moving averages. If price falls back below these levels, it could be a sign of weakness. The 12 and 21 weekly EMAs have acted as resistance in the past, and if price fails to break above them, it could indicate a continuation of the range-bound price action.

On the monthly chart, the 200 and 21 weekly EMAs are also acting as resistance. Price has not been able to find acceptance above these levels, further confirming the indecision in the market. It is important to note that we are still in a range-bound environment, and there is no clear direction from a high time frame perspective.

Range Analysis

To analyze the range, we can mark out the monthly opens and key swing levels. The August and September monthly opens are important levels to watch. If price can reclaim the September monthly open and push above it, it could indicate a move back up to around 29k. However, if price falls back below the monthly open, it increases the probability of further downside.

In terms of trade setups, if there is a pullback into the 26.3-26.4 level and it holds, it could be a trigger for a long trade back up to 28.5. This would be a short-term bullish scenario within the range-bound price action. However, it is important to wait for confirmation and see how price reacts at these levels.

On the other hand, if price continues to trade higher without a pullback, it is not advisable to enter long positions into resistance. It is important to wait for clear signals and confirmation before taking any trades. The risk-to-reward ratio may not be favorable in this scenario.

Execution and Scalping Strategies

When it comes to execution, it is important to be dynamic and adapt to the current market conditions. In the example given, the trader took a short trade based on a swing fail above a key level. However, when price pushed back above the level, the trade was cut to minimize losses. The trader then re-entered the trade when price showed signs of weakness again. This demonstrates the importance of managing trades and being flexible with execution.

In a choppy environment with low volatility, it is advisable to focus on short-term trades and scalping strategies. Taking quick profits and cutting losses is key in this type of market. It is also important to have clear invalidation levels and to monitor price action closely.

Conclusion

In conclusion, the current market conditions for Bitcoin are range-bound and indecisive. It is important to focus on short-term trades and scalping strategies, taking quick profits and cutting losses. The key levels to watch are the monthly opens and the 12 and 21 weekly EMAs. Confirmation and clear signals are crucial before entering any trades. It is also important to be flexible with execution and adapt to the current market conditions.

Frequently Asked Questions

Q: What is the current state of the Bitcoin market?

A: The Bitcoin market is currently range-bound and indecisive. Price is trading within a range that has been established since March, and there is no clear direction from a high time frame perspective.

Q: What are the key levels to watch in the Bitcoin market?

A: The key levels to watch are the monthly opens and the 12 and 21 weekly EMAs. These levels act as support and resistance and can provide valuable insights into the market direction.

Q: What is the recommended trading strategy in the current Bitcoin market?

A: In the current market conditions, it is advisable to focus on short-term trades and scalping strategies. Taking quick profits and cutting losses is key. It is also important to have clear invalidation levels and to monitor price action closely.

Q: How should I manage my trades in a choppy market?

A: In a choppy market, it is important to be flexible with execution and adapt to the current market conditions. Cut losses quickly and take quick profits. Have clear invalidation levels and monitor price action closely.

Q: Should I enter long positions into resistance levels?

A: It is not advisable to enter long positions into resistance levels. Wait for clear signals and confirmation before taking any trades. The risk-to-reward ratio may not be favorable in this scenario.

Q: What is the importance of execution in trading?

A: Execution is crucial in trading as it determines the success of your trades. Being able to enter and exit trades at the right time and price is key to maximizing profits and minimizing losses. It is important to be dynamic and adapt to the current market conditions.