As of early October 2024, Bitcoin is trading around $61,925, reflecting a cautious but slightly bullish sentiment in the market. After a recent recovery from lower levels, Bitcoin is now testing a key resistance zone near $62,000, which is slightly above its 50-day Exponential Moving Average (EMA). Despite this recovery, some technical indicators suggest the market remains uncertain. The Relative Strength Index (RSI) is still hovering around 35, which typically signals that bearish momentum is not fully exhausted.
On-chain data, such as the Puell Multiple (at 0.69), continues to suggest a favorable re-accumulation phase for long-term investors. Additionally, exchange reserves for Bitcoin are decreasing, indicating less available Bitcoin on trading platforms and implying reduced selling pressure. This could potentially support a further rise in price if demand increases.
However, geopolitical and macroeconomic factors, such as interest rate expectations from the U.S. Federal Reserve, continue to contribute to market volatility. If Bitcoin can decisively break and hold above $62,000, there could be further upside potential. Conversely, a failure to maintain key support levels near $60,000 could lead to a short-term downturn.
Overall, while Bitcoin's recent rise provides optimism, the market remains on edge, and careful attention to resistance and support levels is crucial for navigating the coming weeks.
