Bitcoin (BTC), the largest cryptocurrency by market cap, started the third week of October with a 6% daily gain. Bitcoin’s performance has fueled bullish sentiment among crypto investors and market watchers, who suggest it could be ready to move to $70,000.
Bitcoin Reclaims Key Support Levels
Bitcoin started the week by reclaiming key resistance levels after a 6% surge from its price on Sunday. This performance saw Bitcoin move from the $62,000 support area to retest the $66,000 support area on Monday morning.
Based on recent performance, Bitcoin’s October returns have turned green so far with a monthly return of 3.17%, according to Coinglass data. Cryptocurrency analyst Rekt Capital highlighted Bitcoin’s recent moves, noting that Bitcoin has managed to reclaim a two-month downtrend as support.
According to the analyst, the leading cryptocurrency has retested a downtrend line dating back to late July since early October. Bitcoin successfully retested the trendline and bounced off it for two consecutive weeks, turning the range into support.
Additionally, the analyst noted that Bitcoin has had several successful retests, including a “swing test” of the bull market’s 21-week exponential moving average (EMA).
“Notice how the bottom of the green box meets the retest of the July downtrend, and how the retest of the 21-week EMA meets the top of the green box,” the analyst added.
Similarly, Ali Martinez emphasized that BTC is currently making another attempt to reclaim the 200-day moving average after four consecutive rejections in the past two months.
BTC Challenges August Highs
Rekt Capital noted that Bitcoin has consolidated the $58,000 to $61,000 range as a support area throughout the year: “It did so at a higher low compared to the lows of the previous month as well as the lows of the August lows.”
Furthermore, the analyst noted that Bitcoin challenged the August highs, around $64,200, after recently retesting key levels. He noted that Bitcoin’s recent moves are a “clear sign” that the August level is “weakening as resistance.”
Rekt Capital noted that Bitcoin is retesting the top of a multi-month weekly downtrend channel, which is also weakening as resistance. The leading cryptocurrency has successfully tested the channel’s range lows as support this month.
The lower range levels acted as a 7-month converging support with the previous all-time high (ATH) area. However, the analyst noted that BTC must have a weekly close above the top of the downtrend channel to break out of this pattern.
A weekly close above the August highs, followed by a successful retest of this level, would “create significant buying pressure on the top of the descending channel,” which could be accelerated if Bitcoin’s daily close is above $64,200.
Moreover, a daily close above $65,000 and a successful reclaim of the range as a support zone could send Bitcoin price towards the $70,000 resistance zone. The analyst noted that whenever Bitcoin closes the day above this level, the cryptocurrency will move within the $65,000-71,350 range in the following days.
At the time of writing, BTC is trading at $65,812, up 4% and 10.3% on the weekly and monthly time frames.
Source: NewsBTC.com
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