Bitcoin was able to draw some demand over the weekend and push upwards to the previous broken support level. On some platforms which offer BTCUSD as a CFD without weekend trading activity, this manifested as an upside gap. However price action for the day remains muted with low volumes and little activity. BTCUSD is presently trading at 8160, having touched off the 8250 level as the intraday high.
This month has been one of a bearish rout for Bitcoin, as it broke below two major support levels in a 13.5% fall. However, there has been a reprieve for the number one cryptocurrency in the last week, as BTC has been able to record gains of 3.75% in the last 3 days.
It is believed that the drop has occurred because of the October 25 expiration of BTC futures on CME, which came with a reduction in open interest. However, bids for BTCUSD are starting to pick up around the 7707 level, which has provided price support for the weekly candles of the last three weeks.
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Intraday Outlook for BTCUSD
Price activity on the daily chart continues to show sideways trend, with 7707 acting as major support and 8289 continuing to act as the resistance. Long term bias is still bearish, but near term bias is neutral, providing a good basis for range trading.
If price breaks the 7707 support, expect an Antipodean-style drop to 7011 in the first instance (23.6% Fibonacci level or May 26 2019 lows).
If price is able to push up above the 8289 range ceiling, the descending resistance trendline may provide an upside barrier around the 9000 mark. Above this level, the broken lower border of the descending triangle at 9200 becomes relevant.
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