Bitcoin's price action suggests the market may be transitioning towards a new trend, one which could put an end to the current bear market.
The price has been consolidating above the $18k support level for over three months. Is this the start of a reversal?
The indicators on the weekly and monthly timeframes suggest that the worst is behind us which could explain the current price action.
This is further reinforced by the fact that Bitcoin made a higher low in September which could signal that the drop on June 18th was the current cycle bottom.
All eyes are on the current price action which can be decisive. Should Bitcoin manage to break above $22k, then there is a real chance that this consolidation since June was the precursor to a breakout from the current downtrend.
After that, the only key resistance left before declaring the current bear market over is the 200 Week Moving Average that will act as resistance around the $25k price level. That is the key price BTC has to reclaim to restore confidence in the market and start the race towards a new bull market.
Historically, October has been a bullish month for Bitcoin, and that favors such a scenario. Nevertheless, the current volatility in traditional markets will likely continue to act as a break on any ambitious breakout.
If we zoom in on the daily timeframe, we can see that Bitcoin is attempting to break the $20,500 local resistance and turn it into support. This is crucial if buyers are to remain in control of the price action.
The current support for BTC is just under $20,000. A break below that and optimism will be quick to disappear from the market.
The daily indicators such as the MACD and RSI are currently bullish. Moreover, if we move to higher timeframes, including the weekly, we can see that the same indicators are turning bullish. This cannot be ignored and is a significant change compared to June.
For these reasons, my bias leans bullish. To confirm it, BTC's price has to move above $22k and slowly approach the $25k level which is critical to reverse this bear market.
Keep a close eye on the current levels as they can become decisive for BTC's next steps. Either way, volatility is about to return and with it a clear trend will form.
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The price has been consolidating above the $18k support level for over three months. Is this the start of a reversal?
The indicators on the weekly and monthly timeframes suggest that the worst is behind us which could explain the current price action.
This is further reinforced by the fact that Bitcoin made a higher low in September which could signal that the drop on June 18th was the current cycle bottom.
All eyes are on the current price action which can be decisive. Should Bitcoin manage to break above $22k, then there is a real chance that this consolidation since June was the precursor to a breakout from the current downtrend.
After that, the only key resistance left before declaring the current bear market over is the 200 Week Moving Average that will act as resistance around the $25k price level. That is the key price BTC has to reclaim to restore confidence in the market and start the race towards a new bull market.
Historically, October has been a bullish month for Bitcoin, and that favors such a scenario. Nevertheless, the current volatility in traditional markets will likely continue to act as a break on any ambitious breakout.
If we zoom in on the daily timeframe, we can see that Bitcoin is attempting to break the $20,500 local resistance and turn it into support. This is crucial if buyers are to remain in control of the price action.
The current support for BTC is just under $20,000. A break below that and optimism will be quick to disappear from the market.
The daily indicators such as the MACD and RSI are currently bullish. Moreover, if we move to higher timeframes, including the weekly, we can see that the same indicators are turning bullish. This cannot be ignored and is a significant change compared to June.
For these reasons, my bias leans bullish. To confirm it, BTC's price has to move above $22k and slowly approach the $25k level which is critical to reverse this bear market.
Keep a close eye on the current levels as they can become decisive for BTC's next steps. Either way, volatility is about to return and with it a clear trend will form.
Like and follow if you liked my idea!
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