FX.co ★ Technical Analysis of BTC/USD for October 11, 2023

Crypto Industry News:

The new Fidelity Digital Assets report argues that bitcoin is fundamentally different from other digital assets and should be assessed separately when constructing investment portfolios.

Fidelity Digital Assets is today the third largest asset manager in the world. Its analysts show great interest in BTC. In a new report, they suggest that bitcoin needs to be assessed differently from other digital assets.

The authors of the report, Chris Kuiper and Jack Neureuter, believe that bitcoin should be defined as a scarce monetary asset. In this sense: with limited supply. The goal of BTC investors should be to store value. Unlike other digital assets, the world's first cryptocurrency was designed to create a "censorship-resistant form of digital money."

Investing in other digital assets carries potentially higher returns, but also risks. This brings "ordinary" tokens and cryptocurrencies closer to assets from the venture capital market.

So, given the clear risk-reward profile of investing in Bitcoin, analysts say that cryptocurrency investors should consider BTC a monetary asset that is used more as a store of value. It is complemented by other digital assets that are characterized by greater price volatility. In other words, a portfolio containing bitcoins and altcoins can be compared to an investment portfolio with gold and stocks.

Technical Market Outlook:

The BTC/USD pair has broken out from the ascending channel on the H4 time frame chart and made a local low at the level of $26,965. The intraday technical support seen at $27,144 was violated, so it will now act as the technical resistance. The weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook for BTC. Any breakout lower would likely extend the down move on BTC towards the level of $26,909 (100 MA).

Weekly Pivot Points:

WR3 - $28,205

WR2 - $28,019

WR1 - $27,907

Weekly Pivot - $27,834

WS1 - $27,722

WS2 - $27,648

WS3 - $27,462

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.