Bitcoin has proven to be a solid store of value, but has yet to deliver big gains. After a sharp drop from $68,000 to $55,385, a loss of nearly 20%, Bitcoin has been stuck in a narrow range between $55,500 and $58,000 since September began.
However, October is approaching, which is generally considered a positive month for Bitcoin. Historically, October has been bullish for Bitcoin in 11 of the past 9 years. Will this October continue the trend and bring Bitcoin back to its all-time high?
The Sustainability of the 55K Support Level
According to popular crypto trader Captain Faibik, this month is crucial for Bitcoin supporters. They need to hold the $55,000 support level to ensure Bitcoin can recover effectively.
If they succeed in holding this support, Bitcoin could bounce back and quickly challenge the $68,000 resistance level once again. This support level has played a key role in the recent market volatility, and its stability will be pivotal in Bitcoin's short-term direction.
At the same time, Faibik also pointed out that the $68,000 to $69,000 resistance level is getting weaker every time Bitcoin tests it. This suggests that Bitcoin could easily break through this level in the near term. If that happens, we could see a major price increase.
Looking ahead, Captain Faibik is optimistic about Bitcoinâs performance over the next three months. He believes that market conditions are shaping up for a positive trend that could result in significant price growth.
Is This Year Different?
In line with a similar positive outlook, popular crypto analyst Jelle highlighted a recurring pattern observed over the years, where the end of summer often leads to a surge in crypto prices. Typically, as summer comes to an end, the market tends to recover and accelerate.
While past trends suggest a promising outlook, Jelle cautions that it remains to be seen whether this year will follow suit. Market conditions are subject to change, and a variety of factors could influence whether historical trends continue into 2024.
Bitcoin Technical Analysis
Looking at Bitcoin technicals, a bearish crossover has occurred on the Bitcoin price chart. This means that the 50-day moving average has fallen below the 200-day moving average on the 4-hour chart, signaling a potential decline.
Bitcoin's RSI (Relative Strength Index) is currently at 43.30, indicating that the market is close to being oversold but not yet at extreme levels. If Bitcoin's price climbs to around $58,000, it could be at risk of falling below $55,000, based on the current market trend.
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