ZC: #1. Market Moves - W/C 16th October

💥Explosive Start

Well, well, well, what a start to the week!!

Only one place to start. Bitcoin surged 10% intra day on news that the much anticipated ETF had been approved.

I managed to sneak in a trade at around the 27,808 which TP'd at 28,417 for 3R, slightly above resistance. I set my TP there as I expected a wick above resistance leading to a fake breakout and retrace. What followed in fact was an impulse move into the $30,000 resistance!

Bitcoin spiked up to $30,000 before retracing the move after the ETF news was proven false.

Initially, as the price surged, I thought I had it close too early but then information started to come in that the news was fake. Cue a retrace of the entire pump above the $28k resistance level. As of the time of writing, the price is still below that level.

Details of the trade were published on the official Zeahl Capital X account [@Zeahl_Capital]. Some trades I make will be on the fly based on market moves so to get more info faster follow me on X.

Something to note, the impulse move may have retraced but it’s clear that once the ETF is approved, and it will be approved, the price will soar. I wouldn’t be surprised to see the move to $30k slowly fill as traders anticipate the approval.

FOREX

FX was largely flat so far. I took a long on USDCHF earlier today which I published through Notes and X. So far the trade is open at a small loss.

The USDCFH looks like it has put in a double bottom

The reason for taking this trade is that DXY was at a diagonal support whilst the USDCHF pair had put in what looks like a double bottom. Now it seems that support has failed on DXY and zooming out, it looks like we hit a local top midway through the channel.

In all likeliness i will close this trade for a small loss if I don’t see any strength on the Swiss pair.

Stock Market

The market opened green with the S&P 500 posting an 1% gain. There is potential room to run up to the mid 4400 area based on strength. If the gains sell off I expect further downside to the low 4200s.

Overall, a decent start to the week. I’ll be looking for more FX pairs to trade in the coming days while keeping my eye on crypto. I get the feeling this week is going to a very volatile one.

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Best

Jack D Muscat