Originally published on: October 07, 2024
Bitcoin has surged by 7.75% from its recent low of $59,815 on October 3 to reach a monthly high of $64,448 on October 7, setting the stage for a potentially volatile week ahead.
Analyzing the chart below, we can see that Bitcoin briefly dipped below the 200-day EMA (yellow line) at the start of the month. However, a swift recovery above this indicator has propelled prices upwards over the past four days.
Bitcoin’s price movement has been quite eventful, with a notable 8.8% decline between September 30 and October 4, followed by a crucial re-test of the $60,000 level. Since then, the price has rebounded to nearly $64,000, resulting in a positive monthly return on investment (ROI).
According to Jelle, a crypto analyst, the recent recovery in BTC confirms a robust bullish pattern. The formation of a higher high (HH) pattern above $65,000 in September was followed by a higher low (HL), indicating an established uptrend that the analyst believes is now “locked in” after Bitcoin successfully re-tested a key resistance/support zone.
In addition, another independent analyst, Titan of Crypto, has shed light on an upcoming weekly golden cross for Bitcoin, which historically carries bullish implications for the market.
Despite the recent recovery in Bitcoin’s price, it experienced a 2.87% dip over the past seven days. This dip may be partly attributed to its correlation with stablecoins. IT Tech, an on-chain analyst at CryptoQuant, pointed out a significant relationship between BTC and stablecoin market caps, suggesting that a decrease in stablecoin supply could lead to selling pressure and a subsequent correction in BTC’s price.
On the flip side, an increase in stablecoin market cap could signal higher Bitcoin prices in the coming weeks. Mister Crypto, an independent investor, also highlighted this correlation, emphasizing the importance of monitoring stablecoin market dynamics for insights into Bitcoin price movements.
Technically speaking, Bitcoin is showing an HH and HL pattern, with a daily close above $64,000 being crucial for sustaining upward momentum. While Bitcoin touched a high of $64,400 recently, closing above $64,000 will be a strong indication of continued bullish sentiment and a confirmed monthly high.
With Bitcoin currently hovering between the $64,130-$63,300 supply zone established on September 1, swing traders may consider capitalizing on this price range for potential profits.
In conclusion, Bitcoin’s rally to $64.4K marks a significant milestone, with analysts highlighting a bullish trend that could potentially drive prices higher in the coming weeks. Stay tuned for more updates on the cryptocurrency market as it continues to captivate investors and traders alike.
