Bitcoin (BTC) sparked cautious optimism among bulls on October 12, climbing to multi-day highs and mirroring the previous weekend’s price action. TradingView data indicated that BTC hovered near $63,500, marking a 1.5% gain on that day. This pattern resembled the one observed the week before.
The October 11th Wall Street trading session witnessed significant progress for BTC/USD. This surge came after the cryptocurrency spent a considerable portion of the week testing the crucial $60,000 support level. Defying expectations, Bitcoin appeared unfazed by fresh US inflation concerns and even managed to shrug off reduced market bets on the extent of future interest rate cuts, seemingly attempting to synchronize with the positive performance of US equities.
Key Levels Signal Bitcoin’s Next Move
Popular trader Skew offered insights into the recent price movement by analyzing 4-hour timeframes. According to Skew, the inability to breach the initial low combined with a clear upward reversal pointed towards a natural reversion. He further highlighted Relative Strength Index (RSI) scores exceeding 50 and consistent spot demand as key indicators potentially foreshadowing a price increase.
Skew concluded by emphasizing the pivotal role of monthly and weekly open levels – $62,850 and $63,330 respectively – in influencing future price action. Reclaiming these levels by buyers would be a significant step towards another attempt at reaching $65,000.
Trading resource Material Indicators delved into exchange order book liquidity analysis and identified two additional potential upside targets for BTC prices, both positioned slightly below the $65,000 mark.
Material Indicators, referencing one of its proprietary indicators, informed its followers on X that FireCharts indicated a significant buildup of Bitcoin support surpassing $63,000, suggesting a potential challenge to the 200-Day Moving Average by bulls. A successful breach of the 200-Day MA could pave the way for a more substantial move, potentially leading to a “Resistance-to-Support Flip” at the 2021 Mid-Cycle Top of $64,900.
Traders Optimistic Despite Weekend Volatility
Michaël van de Poppe, a prominent trader, analyst, and entrepreneur, expressed optimism regarding the future, anticipating a continuation of the positive trend for bulls in the upcoming week. He summarized the recent price action, stating that Bitcoin “took the liquidity beneath $59.5k and quickly ran up.” Van de Poppe predicted a period of consolidation before a potentially significant upward move next week.
He further emphasized that a breakout above the $64,000/$65,000 range would be a crucial catalyst for fresh all-time high tests and subsequent rallies in the altcoin market.
Further bolstering the hopes of Bitcoin bulls was an optimistic prediction shared by Crypto trader Ash. Ash pointed to the recent formation of a ‘golden cross’ between the 25-day and 35-day moving averages. This technical indicator has historically signaled upward price movements in Bitcoin.
In previous instances, a similar golden cross on the monthly timeframe preceded parabolic rallies in Bitcoin. In 2016-2017, following a golden cross, the cryptocurrency witnessed a staggering 2,400% price increase. More recently, in 2020-2021, another golden cross was followed by a 600% surge in its value. According to Ash, Bitcoin has just experienced another golden cross, signaling the potential for yet another parabolic run soon.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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