 Hello and welcome to the chart of the week video would be David Madden Today's date is Tuesday the 6th of October 2020 and the time has just gone 1738 British summer time And this week's chart of the week is Bitcoin Now first things first, let's take a look at the wider price action We can see here that Bitcoin was in quite decent shape in the middle of February just before the pandemic struck We saw an aggressive sell-off in the cryptocurrency along with you know most other assets And then ever since then it's had a quite a decent bounce back We could see here in the middle of March it traded below four thousand dollars in the middle of August Five months later. I got up to north of 12,000. So it would triple more than triple triple than value In space of about five months and since then we can see that the price action Has been a bit range bound the market has cooled back a little so we've seen the lower low the lower high a lower low a lower high You know that now we've seen the lows of late September are above the lows of early September But you know the highs you've seen in late September have yet to take out the highs of mid-September So we've been a bit range bound recently So where do we go from here? Well, let's not forget that that wider upward the wider trend I still very much to the upside if you take a look at the lows the lows have been getting higher That would suggest that the bias is still to the upside even though we haven't seen a massive move to the upside the lows are getting higher and We can see here that that this yellow line here the 100 a moving average Which comes into play at ten thousand and two hundred two ten thousand two hundred sixty eight We can see that it's actually nicely a support on a few occasions And if we continue to hold above that metric it's lucky that the wider upper trend is going to continue if you press on higher from here We could be looking up heading up towards eleven thousand, you know the next big number up But also we can see this just north of eleven thousand It's just blue line here at the fifth day moving average, which comes to play at eleven thousand one hundred I said eleven thousand one hundred and fourteen and I have seen That area be of importance in the last few months, you know I like to as both as you know as resistance on a few occasions and even after support as well Not too long ago back in the early September and if a metric is acted as Supporter resistance in the past it makes it more likely it'll be of importance in the future although there are no guarantees we can also see at the current level of the of the 50 moving average Eleven thousand one hundred and fourteen is not too far away from the mid-september highs. It's a bit north of it So if you do break above that it will be fairly significant And then if you do go north of that again We could be looking at targeting this area here in around twelve thousand and if we go beyond twelve thousand We could be looking at heading up towards the mid the August highs in around twelve thousand four hundred and seventy seven I keep in mind those those those levels were last seen in in July of last year July twenty ninety So here in the case you know how strong the market was only only save about two months ago Conversely if you do have a decent break to the downside we could see support come into play in around ten thousand You know big psychological number a move below that could take us down towards this zone here the lows of September ninth in around nine thousand eight hundred and fifty down towards that the highs of the twenty third of July in around nine thousand six hundred and seventy eight This entire zone here To be honest anything safe from ten thousand down to nine thousand six hundred and seventy eight Notice how the market gap tire here So a gap was created now one of the myths about gaps is that they're always filled they're not always filled But they are often filled so it is quite possible We could move all the way lower fill that gap and they continue on in the wider upper trend that's been in place now just before we Finish the video. Let's take a quick look at what's going on with a theorem The purpose of that is doll theory one of the tenants of doll theory is that the averages must confirm each other Which essentially say states markets that are that are quite similar should be moving in you know Are likely to moving in the same direction. So take a look at the price action in the theorem We can see here in the middle of middle of March It was north it was below a hundred dollars and a massive rally into September when it got up to well over $400 got got up towards 500 bucks so that a massive rally like Bitcoin It's had a bit of a pullback since then but the wider upward trend is still in play If we do see a break higher in ethereum if we do see a theory and get back above its respective 50-day moving average here this blue line here It'll make it more likely that we could see something similar in Bitcoin, but obviously there are no guarantees Thank you for listening. Have a good training week and good luck