Bitcoin October Roundup
October was nothing short of a dramatic episode for Bitcoin (BTC), wrapping up the month at a cool $9,150. This marked the first monthly gain since June, giving crypto enthusiasts a reason to uncork the bubbly (or at least a can of fizzy water). In a twist straight out of a trading soap opera, Bitcoin hit new lows at $7,300 before making a heroic leap of 40% to reach $10,350. Talk about a comeback!
Current Price Movement
Fast forward to Friday, and Bitcoin’s price is ticking up slightly, gaining about 0.39%. However, it took a little tumble over the previous 24 hours, dropping around 1.61%. It’s almost like Bitcoin is trying to keep us on our toes, right? Other major cryptocurrencies are experiencing similar dips, leading traders to collectively hold their breaths.
The Monthly Report Card
The charts are showcasing an interesting tale. Bitcoin has been in sell-off mode ever since hitting almost $14,000 in June. Those $7,000s in October? A 61.8% retracement from its 2019 peak, signaling that this ride isn’t over yet. The bulls have their work cut out for them if they want to break through the previous highs of $10,350 and show they mean business.
Weekly Trends and Indicators
When we shift our focus to weekly charts, we notice that Bitcoin managed to break above a diagonal resistance that had been in place for 16 weeks. Cue the confetti! But wait, there’s a party crasher: the former support level of $9,500 is now acting as a hefty wall of resistance. Meanwhile, the MACD indicator hints at declining bearish momentum. The 100-week moving average continues to hold as support and seems poised to cross above the 50-week average, mirroring an event that led to a 75% price increase back in 2016.
Implications of the CME Gap
Looking specifically at Bitcoin futures, there’s a notable gap residing at $8,762 due to a swift upward move last weekend. While some traders are getting jitters over this gap, it’s essential to keep in mind that price action doesn’t always guarantee a fill right away. The waiting game continues, with speculation swirling around a potential upside gap yet to be filled at $11,695.
The Road Ahead
For Bitcoin aficionados, the target remains clear — close above $9,500. A sustained rally past this point could see prices quickly bounce towards $11,500, a level that hasn’t been touched since January 2018. The market remains fluid, and with the halving event just around the corner in May, traders might be inclined to view recent trends as a chance for accumulation rather than panic. Whether Bitcoin hops back above $10,000 or toys with the mid-$8,000s remains to be seen, but one thing’s for sure: the rollercoaster isn’t ending yet!
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