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BTC/USD: Slide Lower amidst Potential Concerns and Shadow

By Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

The 26,100.00 vicinity in BTC/USD should be watched as support, if this ratio proves vulnerable and the 26,000.00 level is broken lower it could set off an important decision for speculators. 

As of this writing, BTC/USD is near the 26,870.00 price. As of last Friday, the 6th of October, Bitcoin had fought its way above the 28,000.00 level again, but could not sustain momentum higher. On the 2nd of October BTC/USD traded above the 28,500.00 mark. A six-month chart for Bitcoin shows the inability of the digital asset to sustain bullish moves and a rather impressive amount of support between 25,500.00 and 26,000.00, which have then spurred reversals higher only to wash them run out of power.

Speculative traders of BTC/USD who have a taste for only buying the asset via day wagers may find the current price level of Bitcoin intriguing because it appears to be incrementally moving towards the important support levels again. They may be proven right. However, there are a couple of potential shadows lurking that may change behavioral sentiment regarding speculative buying positions.

While BTC/USD Remains Somewhat Calm, Binance Coin Struggles

Traders who look for correlation in cryptocurrencies likely use the value of Binance Coin as a barometer to the price of other cryptos they are trading. While Bitcoin is supposed to stand alone amongst the crowded field of cryptocurrencies, the digital asset doesn’t work in the world alone and it is affected by sentiment in the broader market – rightly or wrongly.

The price of Binance Coin is continuing to struggle, and its long steady move lower is a reason for concern among traders who look for relationships within the crypto trading world. If Binance Coin continues to move lower and BNB/USD suddenly is challenging the 200.00 ratio, this could set off alarm bells in the crypto world including for speculators of BTC/USD.

27,000.00 Level Again in Focus and Important for BTC/USD

  • BTC/USD has fallen through 27,000.00 in early trading today and if the price of Bitcoin is sustained beneath this important mark, it could spark concerns that another bearish trend is developing.
  • Yes, trading in BTC/USD is historically choppy and volatile, but trends definitely are part of Bitcoin’s fame. The move lower the past week has occurred as Binance Coin has failed to show any ability to reverse higher.

The 26,100.00 vicinity in BTC/USD should be watched as support, if this ratio proves vulnerable and the 26,000.00 level is broken lower it could set off an important decision for speculators. Having created a series of reversals higher from the 25,500.00 to 26,000.00 levels for day traders, some may be inclined to buy but if Binance Coin remains under pressure perhaps this could be an indicator selling pressure could actually increase for BTC/USD in the near-term.

Bitcoin Short-Term Outlook:

Current Resistance: 26,925.00

Current Support: 26,450.00

High Target: 27,655.00

Low Target: 25,775.00

BTC/USD

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Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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