10.15.2020 Update (Thu)
The big picture on the daily time frames
BTC remains in a bullish trend with the active seller group still selling in profit. As mentioned in the weekly outlook, we are fairly bullish for the week ahead, and I think the focus should be remaining on the bull side, not taking profit too early, and buying the dips when possible. Weekly resistance at 11.9k. Weekly support at 11.2-11.3k (past resistance). SL for long could be set around 11k. A few hours ago, Grayscale also announced their $1Billion quarter for Q3 – largest ever quarterly inflow. This further confirms the bull trend and indicates the current price level is hardly the top.
The ever changing battlefields on the hourly time frames
Sentiment is now on the overly bearish side, which is a bullish sign. Given the bullish fundamentals and the current uptrend, I don’t think there’s a need for profit-taking until the market gets overly bullish. The 5 waves to the upside likely not over yet. One key thing to note is that the daily BTC RSI is now going to close above 65+. If you scroll to the left on the daily chart, you’ll see this generally indicates a continued bullish momentum. The thing is even though we could retrace to 11.2kish, there’s no guarantee the retracement will be hit, and the chance of us going higher than 11.5k is high. So, I like the R:R for entering long at the current level.
Same as yesterday, BCH sentiment remains on the bearish side (bullish sign). Flag in development. More upward momentum coming. Open interest at a much more ideal level compared to that of BTC / ETH. In other words, the chance of large moves on BCH is higher than the chance of large moves on BTC / ETH.