After weeks of wild volatility, Bitcoin is at a critical juncture, with markets feeling both excited and fearful. Currently trading around $59,400, Bitcoin is testing key demand levels after a 10% drop from local highs around $66,000.
Recent price action has sparked uncertainty among investors, some of whom remain hopeful of setting new all-time highs for this cycle. As the cryptocurrency market reacts to external factors, many are closely watching where Bitcoin goes next.
A prominent cryptocurrency analyst shared a long-term chart that highlights an interesting trend: Historically, October has typically heralded the start of a BTC bull run. The insight adds a tinge of optimism for those looking to capitalize on potential upside momentum.
With the market caught in a mix of emotions, all eyes are on Bitcoin to see if it can recover its lost ground and hit new highs.
The coming days will be key for traders to assess whether BTC can maintain its bullish trajectory or if a further correction is in the future. Given historical patterns and current market dynamics, investors are eagerly watching to see how this narrative unfolds.
Bitcoin surges after halving: is it almost here?
Bitcoin is currently in a highly volatile environment, with traders and investors feeling uncertain. Prices are not showing a clear direction or specific targets, causing concern among market participants.
Many analysts worry that the historical bull run expected after the recent halving may not materialize this time around, which could result in a missed opportunity for potential gains.
However, there is a glimmer of hope from top cryptocurrency analyst Ali, who recently shared a compelling X technical analysis with a chart that highlights an important trend: Historically, every major rally in Bitcoin has started in October, the year of the minus half.
According to this analysis, Bitcoin has always started a parabolic bull run after the halving event in October every year, and many believe that this cycle should be the same. This historical data has prompted many traders and investors to hold their coins in the hope of a recovery.
This strategy could be profitable for some, potentially leading to significant profits. Conversely, it could also spell trouble for those who are overly optimistic, especially if BTC fails to live up to those expectations.
As October approaches, the market remains in suspense. Traders know that the next few weeks will be crucial in determining the direction of Bitcoin.
While the possibility of a bull run is imminent, the risk of further volatility and correction remains, making this a critical moment for those investing in this dynamic asset. The interplay between historical patterns and current market dynamics will soon determine BTC’s fate.
BTC testing key requirements
Bitcoin is trading at $61,350 after encountering resistance at the 4-hour 200 exponential moving average (EMA) at $61,645. The price remains above the 4-hour 200 moving average (MA) at $60,363, which is a crucial support level as the bulls try to regain strength.
BTC testing 4H 200 EMA | Source: BTCUSDT chart on TradingView
BTC must break above the EMA and test higher supply levels, especially around $66,000, to continue the uptrend. If successful, this could signal strong bullish momentum in the coming weeks.
Failure to sustain above the 4-hour 200 MA could result in a deeper correction with potential targets around $57,500 or even lower. Traders are keeping a close eye on these key indicators as the current price action reflects a critical moment for Bitcoin.
The next few trading sessions may determine whether bulls can regain control of the market or whether the bearish trend will take over. Investors should remain vigilant as volatility may increase, affecting market sentiment and price direction. The interplay between these technical levels will be crucial for traders to navigate the uncertainty in the cryptocurrency market.
