Bitcoin’s Bullish Run Continues: Is $70,000 on the Horizon?
Bitcoin’s Bullish Run Continues: Is $70,000 on the Horizon?
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Bitcoin (BTC), the leading cryptocurrency by market capitalization, has started the third week of October with a strong surge, pushing the price higher and reigniting bullish sentiment within the crypto community.
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BTC’s impressive performance has prompted many market analysts to predict a potential move towards the $70,000 mark. The cryptocurrency has been steadily reclaiming key resistance levels, with the recent 6% daily surge seeing Bitcoin break out of the $62,000 support zone and retest the $66,000 area.
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This positive momentum has resulted in Bitcoin’s monthly returns for October turning green, currently boasting a 3.17% gain, according to Coinglass data.
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Re-establishing Support and Breaking Resistance
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Crypto analyst Rekt Capital highlights the significance of Bitcoin’s recent movements, stating that BTC has successfully reclaimed a 2-month downtrend as support. The analyst notes that Bitcoin has retested and bounced off this downtrend line, dating back to late July, for two consecutive weeks, transforming the range into a strong support area.
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Further bolstering this bullish sentiment, Rekt Capital points out that Bitcoin has executed several successful retests, including a volatile retest of the 21-week Bull Market Exponential Moving Average (EMA). The analyst emphasizes the confluence of the July downtrend retest with the bottom of the green boxed area and the retest of the 21-week EMA aligning with the top of the green box, indicating a strong support zone.
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Challenging August’s Highs and Moving Towards $70,000
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Ali Martinez, another respected crypto analyst, underlines that BTC is currently making another attempt to reclaim the 200-day Moving Average after four consecutive rejections over the past two months.
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Rekt Capital emphasizes that Bitcoin has solidified the $58,000-$61,000 range as a consistent support area throughout the year, establishing it at a higher low compared to previous downside wicking lows in August and September.
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With the recent retests of these key levels, Bitcoin has challenged the August highs, reaching approximately $64,200. The analyst suggests that these movements are a clear indication that August’s high is weakening as resistance.
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Rekt Capital further notes that Bitcoin is currently retesting the multi-month weekly downtrend channel top, which is also weakening as resistance. Notably, BTC successfully tested the channel’s range lows as support this month, solidifying a 7-month confluent support with the previous all-time high (ATH) area.
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However, the analyst cautions that a weekly close above the downtrend channel’s top is crucial for Bitcoin to break out of this pattern. A weekly close above August’s highs, followed by a successful retest, could exert significant buy-side pressure on the Downtrending Channel Top. This bullish momentum could be accelerated if BTC’s daily close surpasses $64,200.
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Furthermore, a daily close above $65,000, accompanied by the successful reclaim of the range as a support zone, could propel Bitcoin’s price towards the $70,000 resistance zone. The analyst observes that whenever Bitcoin closed the day above this level, it typically moved within the $65,000-$71,350 range in the subsequent days.
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As of this writing, BTC is trading at $65,812, reflecting a 4% and 10.3% surge in the weekly and monthly timeframes, respectively.
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The recent bullish surge and positive technical indicators suggest a strong potential for Bitcoin to continue its upward trajectory, with $70,000 appearing within reach. However, as always, it is essential to remember that the cryptocurrency market remains volatile, and investors should exercise caution and conduct thorough research before making any investment decisions.