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Bitcoin (BTC), the largest cryptocurrency by market capitalization, started the third week of October with a daily surge of 6%. BTC’s performance has sparked bullish sentiment among crypto investors and market observers, suggesting that BTC may be ready to move to $70,000.
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Bitcoin Regains Key Support Level
Bitcoin started the week by regaining a key resistance level after a 6% surge from Sunday’s price. This performance saw BTC move from the $62,000 support zone to retest the $66,000 support area on Monday morning.
Following its recent performance, Bitcoin returns in October so far have turned green with a monthly return of 3.17%, according to Coinglass data. Crypto analyst Rekt Capital highlighted Bitcoin’s recent moves, noting that BTC has been able to reclaim a 2-month downtrend as support.
According to analysts, the flagship cryptocurrency has been retesting its descending trend line since late July since October began. BTC successfully retested and bounced from the trend line for the second week in a row, turning the range into support.
Additionally, the analyst pointed out that Bitcoin has had several successful retests, including a “fluctuating retest” of the 21-week Bull Market Exponential Moving Average (EMA).
“Notice how the bottom of the green box area aligns with the retest of the July Downtrend and the retest of the 21-week EMA aligns with the top of the green box,” the analyst added.
Likewise, Ali Martinez highlighted that BTC is currently making another attempt to reclaim the 200-day Moving Average after four consecutive rejections in the last two months.
BTC Challenges August Highs
Rekt Capital notes that BTC has established the $58,000-$61,000 range as a support area throughout the year: “BTC has been at a Higher Low compared to last month’s low as well as August’s low.”
Additionally, analysts stated that Bitcoin is challenging the August high, around $64,200, after a recent retest of key levels. He suggested that BTC’s recent move was a “clear sign” that the August level was “weakening as resistance.”
Rekt Capital suggests that BTC is retesting a multi-month weekly downtrend channel, which is also weakening as resistance. The flagship cryptocurrency managed to test the channel’s lower range as support this month.
The low of the range has been the 7-month support confluence with the previous all-time high (ATH) area. Nonetheless, the analyst noted that BTC would need to have a weekly close above the top of the downtrend channel to break out of this pattern.
A weekly close above the August high, followed by a successful retest of this level, would “generate significant buy-side pressure at the Downtrending Channel Top,” which could accelerate if BTC’s daily close is above $64,200.
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Additionally, a daily close above $65,000 and successful recapture of the range as a support zone could send BTC price towards the $70,000 resistance zone. The analyst noted that every time Bitcoin closed the day above this level, the cryptocurrency moved in the $65,000-$71,350 range in the following days.
As of this writing, BTC is trading at $65,812, a jump of 4% and 10.3% on the weekly and monthly timeframes.
Featured Image from Unsplash.com, Chart from TradingView.com