{"id":9152,"date":"2021-10-01T13:26:25","date_gmt":"2021-10-01T17:26:25","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=9152"},"modified":"2021-10-10T15:55:16","modified_gmt":"2021-10-10T19:55:16","slug":"october-bitcoin-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/october-bitcoin-breakout\/","title":{"rendered":"Bitcoin Breakout: Why $BTC may be Headed Much Higher in the Near-term"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/btclogo.jpeg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/btclogo.jpeg\" alt=\"\" width=\"750\" height=\"420\" title=\"\"><\/a><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/october-bitcoin-breakout\/#After_a_three-week_pullback_from_its_recent_highs_Bitcoin_kicked_off_October_with_a_powerful_rally_above_several_key_resistance_levels_Heres_where_the_top_cryptocurrency_may_be_headed_next%E2%80%A6\" >After a three-week pullback from its recent highs, Bitcoin kicked off October with a powerful rally above several key resistance levels. Here&#8217;s where the top cryptocurrency may be headed next&#8230;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/october-bitcoin-breakout\/#BTC_%E2%80%93_A_dip_to_short-term_support_could_provide_a_low-risk_pullback_entry\" >$BTC &#8211; A dip to short-term support could provide a low-risk pullback entry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/october-bitcoin-breakout\/#Watch_the_price_action_as_Bitcoin_approaches_overhead_resistance_levels\" >Watch the price action as Bitcoin approaches overhead resistance levels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/october-bitcoin-breakout\/#Scanning_the_charts_for_our_next_big_winner\" >Scanning the charts for our next big winner<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"After_a_three-week_pullback_from_its_recent_highs_Bitcoin_kicked_off_October_with_a_powerful_rally_above_several_key_resistance_levels_Heres_where_the_top_cryptocurrency_may_be_headed_next%E2%80%A6\"><\/span>After a three-week pullback from its recent highs, Bitcoin kicked off October with a powerful rally above several key resistance levels. Here&#8217;s where the top cryptocurrency may be headed next&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The return of bullish momentum was a welcome change to several weeks of choppy, mostly sideways price action.<\/p>\n\n\n\n<p>Most notably, Bitcoin&#8217;s rally today (October 1) enabled the $BTC to break out above pivotal resistance of its downtrend line from the September 6 high.<\/p>\n\n\n\n<p>The $BTC breakout also enabled it to move back above its 10, 20, 50, and 200-day moving averages that were former resistance levels:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/BTC100121.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/BTC100121.png\" alt=\"\" width=\"728\" height=\"644\" title=\"\"><\/a><figcaption><em>Press to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>After ten days of sideways consolidation, pent-up buying pressure from today&#8217;s technical breakout could propel Bitcoin significantly higher in the coming days.<\/p>\n\n\n\n<p>Fundamentally, it&#8217;s quite bullish that even the recent news of China banning Bitcoin (for the 69,420th time) can not hold back the <em>king of crypto!<\/em><\/p>\n\n\n\n<p>Moreover, the month of <a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-history-repeating-3-indicators-suggest-october-will-reignite-the-btc-bull-market\" target=\"_blank\" rel=\"noreferrer noopener\">October is historically quite bullish<\/a> for Bitcoin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BTC_%E2%80%93_A_dip_to_short-term_support_could_provide_a_low-risk_pullback_entry\"><\/span>$BTC &#8211; A dip to short-term support could provide a low-risk pullback entry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If Bitcoin sees minor selling pressure in the coming days, look for $BTC to first find support at the <strong>$46,650 area<\/strong> (50-day MA).<\/p>\n\n\n\n<p>Below that, the<strong> $45,100 area <\/strong>is more significant support of both the 200-day MA and prior highs of the past week&#8217;s trading range (remember that prior resistance becomes new support&#8211;after the resistance is broken).<\/p>\n\n\n\n<p>A pullback to this $45,100 level may provide a lower-risk entry point if you are looking for a short to intermediate-term buy entry in $BTC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Watch_the_price_action_as_Bitcoin_approaches_overhead_resistance_levels\"><\/span>Watch the price action as Bitcoin approaches overhead resistance levels<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Short-term overhead resistance may be found in the <strong>$48,500 to $49,000 range<\/strong> (prior highs from mid-September), which could lead to a bit of price consolidation or pullback as described above.<\/p>\n\n\n\n<p>If $BTC breaks out above that range, it will create a significant &#8220;higher high&#8221; on the daily chart, which would provide additional confirmation that the bulls are back in charge.<\/p>\n\n\n\n<p>Beyond the $49,000 area, Bitcoin will need to contend with significant resistance around the <strong>$52,500 to $53,000 area<\/strong> (prior highs from September 6).<\/p>\n\n\n\n<p><em>A high volume rally above the $53,000 level could easily spark a $BTC rally to test its all-time high (just below $65,000).<\/em><\/p>\n\n\n\n<p>As always<strong>, look for higher volume on the &#8220;up&#8221; days (accumulation) to confirm the rally.<\/strong><\/p>\n\n\n\n<p><em>If<\/em> higher volume does not accompany any rally, then we must always be on guard for a potential reversal back down. <\/p>\n\n\n\n<p>Although many cryptos trade independently of Bitcoin&#8217;s direction, we still use $BTC as an overall &#8220;index proxy&#8221; of the overall crypto market&#8217;s health&#8211;just as the Nasdaq is a popular proxy for gauging overall tech stock performance. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scanning_the_charts_for_our_next_big_winner\"><\/span>Scanning the charts for our next big winner<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Our <em><a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Morpheus Crypto<\/strong><\/a><\/em> service focuses on relative strength and other technical analysis strategies to profit  from short to intermediate-term swing trading of the top cryptocurrencies.<\/p>\n\n\n\n<p>Although we occasionally trade Bitcoin and Ethereum directly, we typically prefer to trade leading altcoins with high relative strength to the overall crypto market.<\/p>\n\n\n\n<p>Each new crypto trade entry is transparently tracked in our replicable Model Crypto Portfolio, which is designed for traders looking to follow a professionally managed crypto portfolio.<\/p>\n\n\n\n<p>The Model Crypto Portfolio is currently holding 7 open positions (5 winners so far), most of which are<strong> short-term momentum swing trades<\/strong>.<\/p>\n\n\n\n<p>Still, we occasionally hold big winners for longer-term gains as well, such as the <strong>massive gain of +93% in a longer-term Quant ($QNT) position <\/strong>(long since early August).<\/p>\n\n\n\n<p>Furthermore, $QNT is now setting up for a potential blastoff to new record highs again.<\/p>\n\n\n\n<p>Check our recent post, <em><a href=\"https:\/\/new.morpheustrading.com\/blog\/qnt-breakout-setup\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Quant May Soon Break Out to Fresh All-time Highs ($QNT)<\/a><\/em>, for a quick chart walk-through that explains the trade setup.<\/p>\n\n\n\n<p>The Model Crypto Portfolio currently has a significant 41% cash allocation because we were avoiding new trade entries during the crypto market&#8217;s recent correction.<\/p>\n\n\n\n<p>However, we are now proactively scanning hundreds of charts to find the next swing trade setups that could turn into our next monster winners.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" target=\"_blank\" rel=\"noreferrer noopener\">Sign up now<\/a> to be instantly alerted to our exact entry and stop prices for the next crypto trades we add to the model portfolio.<\/strong><\/p>\n\n\n\n<p>Based on the current breakout, the crypto market could be warming up for another powerful rally&#8211;make sure you&#8217;re ready to profit!<\/p>\n\n\n\n<p><em>Remember to trade what you see, not what you think!<\/em><\/p>\n\n\n\n<p>See you in Crypto Chat!<\/p>\n\n\n\n<p>Deron Wagner, PhD (h.c.)<br><br>Founder @ Morpheus Trading Group<br>Co-founder @ MAST crypto fund (<a href=\"mailto:john@morpheustrading.com\" target=\"_blank\" rel=\"noreferrer noopener\">e-mail us<\/a> for details)<br><br><strong><a href=\"https:\/\/twitter.com\/mtg_crypto\" target=\"_blank\" rel=\"noreferrer noopener\">Follow Us<\/a> on Twitter<\/strong> <strong>for hot crypto trade ideas<\/strong> <strong>and trading strategy tips.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After a three-week pullback from its recent highs, Bitcoin kicked off October with a powerful rally above several key resistance levels. Here&#8217;s where the top cryptocurrency may be headed next&#8230; The return of bullish momentum was a welcome change to several weeks of choppy, mostly sideways price action. Most notably, Bitcoin&#8217;s rally today (October 1) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[772],"tags":[],"class_list":["post-9152","post","type-post","status-publish","format-standard","hentry","category-crypto-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=9152"}],"version-history":[{"count":4,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9152\/revisions"}],"predecessor-version":[{"id":9232,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9152\/revisions\/9232"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=9152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=9152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=9152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}