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    Home » Is BTCUSD Trend Reversal a Fact?
    Analysis

    Is BTCUSD Trend Reversal a Fact?

    Francisco MeyerBy Francisco MeyerNovember 2, 2022No Comments3 Mins Read
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    Is BTCUSD Trend Reversal a Fact

    BTCUSD Trend Reversal is becoming more and more noticeable. Bitcoin has gained 10% in the last seven days of trading. Most of the run happened on Tuesday and Wednesday, October 25-26. BTCUSD rushed through the $20k resistance and is trying to establish itself above the $20,500 support. Bitcoin’s market capitalization exceeded $1 trillion, another critical psychological barrier.

    What does power the recent BTCUSD run?

    First, the run is happening at the cost of bears with short positions open, expecting the crypto prices to crash into the abyss. The number of such positions grew since the local low of $17,600 in June. Keeping short positions is not free, and the market has stayed above the $18k support since then.

    It is estimated that over $1 billion worth of short positions has been liquidated this week. This has created a “short squeeze” on BTCUSD and other currencies, which you can check in SimpleFX Trading App.

    BTCUSD Trend Reversal. Is confidence on the rise?

    Crypto bulls could take a little breath recently as analysts believe the upcoming Fed interest rate increases may be lower than the previous ones. Such expectations drive equity and cryptocurrency markets up.

    In a larger global scale, the financial markets reacted positively to the new UK prime minister Rishi Sunak. He brings hope to stabilize British politics and economy and is himself a crypto enthusiast, as he proposed and commissioned a royal NFT (non-fungible token) before. The BTCUSD trend reversal may be looming.

    Technical Outlook for BTCUSD Trend Reversal

    The super-wide red bearish channel connecting the November 2021 all-time highs at 68,905 and the local lows of $17,508 from June 2022 has lost its form recently. First, the BTCUSD Japanese candles side-drifted away from the pattern in the first days of October. Although bitcoin stayed below the critical resistance of $20The, price action was so stagnant that even without a strong rally, it broke a vital pattern.

    BTCUSD Trend Reversal
    The 100-day moving average for the BTCUSD remains above $ 25,000 (Source: SimpleFX Trading App).

    The 100-day moving average for BTCUSD (the light blue curve) stays above $25,000, which is the next natural resistance if the bullish green channel is established. Conversely, the 7-day moving average (orange curve) is nearing $20,500, creating new short-term support. However, traders bullish on Bitcoin now should consider support somewhere around $19,200 as the market needs time to accept the BTCUSD trend reversal, even if it’s real.

    Read more:

    • How To Start Trading Crypto Anonymously: A Quick Guide
    • Rishi Sunak and GBP. The Financial Forecast
    • Bitcoin Extends the Run and Passes $20,500
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    Francisco Meyer

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