Bitcoin has proven itself as a solid store of value, but it hasn’t been great for big returns. After a big drop from $68,000 to $55,385, losing almost 20%, Bitcoin has been stuck in a tight range between $55,500 and $58,000 since September started.
But hope is on the horizon for October, often seen as a bullish month for Bitcoin. Historically, October has been bullish for Bitcoin 11 out of the last 9 years. Will this October follow the trend and bring Bitcoin back to its highs?
Survival of the $55K Support
According to prominent crypto trader Captain Faibik, this month is crucial for Bitcoin bulls. They need to keep the $55,000 support level strong to ensure Bitcoin can recover effectively.
If they succeed in holding this support, Bitcoin could bounce back and soon test the $68,000 resistance level again. This support level has been crucial in recent market moves, and its stability will play a key role in Bitcoin’s short-term direction.
Meanwhile, Faibik further notes that the $68,000 to $69,000 resistance level is getting weaker each time Bitcoin tests it. This means that Bitcoin might break through this level more easily soon. If it does, we could see a big increase in its price.
Looking ahead, Captain Faibik is optimistic about Bitcoin’s performance in the next three months. He believes the market conditions are setting up for a bullish trend, which could result in substantial price increases.
Will This Year Be Different?
Echoing a similar bullish stance popular crypto analyst Jelle highlights a recurring pattern observed in previous years, as the end of summer often leads to a rise in crypto prices. Historically, as summer wraps up, the markets tend to recover and gain momentum.
While past trends suggest a promising outlook, Jelle cautions that it’s essential to wait and see if this year will follow suit. Market conditions can change, and several factors might affect whether the historical trend continues in 2024.
Bitcoin Technical Analysis
Looking at Bitcoin’s technical details, a bearish crossover occurred on the Bitcoin price chart. This means the 50-day moving average fell below the 200-day moving average on the 4-hour chart, signaling a potential downturn.
Currently, Bitcoin’s RSI (Relative Strength Index) is at 43.30. This shows that the market is close to being oversold but hasn’t reached extreme levels yet. If Bitcoin’s price climbs back to around $58,000, it might face a risk of dropping below $55,000, based on current market trends.
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