The Bitcoin (BTC) price closed September on a positive note, with a nearly 5% increase for the month. The beginning of October brought even more good news for Bitcoin, as the price continued to rise.
According to technical analysis of the weekly timeframe, the BTC price has been on the rise since the week of September 11. The increase confirmed the $25,300 horizontal area as support. Last week, the price accelerated further, leading to the creation of a bullish engulfing candlestick. This type of candlestick erases all of the previous period’s losses and is considered a positive sign for future trends.
However, despite the bounce, Bitcoin has not yet negated the losses from the decrease on August 17. This decrease created a bearish engulfing candlestick, starting at $29,200, just below the $30,500 horizontal resistance area.
The weekly Relative Strength Index (RSI) is currently bullish. RSI is a popular metric used by traders to gauge momentum and inform their buying or selling decisions. A reading over 50, especially in an uptrend, is considered bullish, while a reading under 50 is considered bearish. The RSI for Bitcoin is above 50 and increasing, indicating a bullish trend. The ongoing increase suggests that the previous drop below 50 is only a deviation, which is another sign associated with bullish trends.
The daily timeframe also provides a bullish reading in the technical analysis. The Bitcoin price has broken out from a descending resistance trendline, suggesting that the previous correction is complete. Currently, BTC is trading within the 0.5 and 0.618 Fibonacci retracement resistance region at $28,350 to $29,150. Whether it clears this level or gets rejected will be crucial in determining the future trend.
The daily RSI also supports the ongoing increase as it is above 50 and moving upwards. If the price closes above the 0.618 Fibonacci retracement level, it could increase by another 10% to reach the yearly high near $31,450. However, if there is a rejection from the 0.5-0 and 618 area, it could lead to a 7% fall, taking the Bitcoin price to the descending resistance line at $26,500.
It’s important to note that this analysis is based on technical indicators and is not financial or investment advice. Market conditions are subject to change, and it is always recommended to conduct your own research and consult a professional before making any financial decisions.
In conclusion, the Bitcoin price has been on a bullish trend recently, with both the weekly and daily technical analysis indicating positive signs. However, it’s crucial to closely monitor the price movements and key resistance areas to determine the future trend of Bitcoin.
