Bitcoin bulls are closely monitoring key charts after BTC's recent weekly all-time high close, analyzing trends and potential future movements. Bitcoin has shown considerable strength, consolidating above $110,000 since July and recently breaking above its previous record levels.
1. Weekly Closing Price
Bitcoin has achieved its highest weekly close ever, a notably bullish signal. The cryptocurrency's ability to maintain levels above $120,000 on a weekly closing basis is viewed as a key indicator of continued upward momentum. A failure to remain above this level could signal a trend reversal, potentially leading to a significant correction.
2. Daily Chart Performance
The daily chart is exhibiting bullish behavior, with Bitcoin breaking through resistance near $110,000 and reaching $125,725 on increasing volume. However, some analysts are noting smaller candles, which could indicate indecision and potential exhaustion among buyers. Key support levels to watch are around $120,000 and $116,000, which may present buy-the-dip opportunities. A failure to overcome the $125,725 mark could invite increased selling pressure.
3. Moving Averages
Multiple moving averages are currently aligned in a bullish configuration. The 10-day EMA is holding at $119,633, the 50-day SMA at $114,001, and the 200-day EMA at $107,347. These indicators suggest a strong underlying bullish trend, but analysts caution that breakouts require strong volume to be sustainable.
Additional Factors and Analysis
- Uptober Expectations: The crypto community often anticipates a positive market performance in October, dubbed "Uptober". Whether this bullish sentiment will materialize remains to be seen, but as long as Bitcoin's weekly close remains above $120,000, the "Uptober" narrative remains viable.
- Analyst Perspectives: Benjamin Cowen, a prominent analyst, suggests that Bitcoin's current cycle mirrors the 2020 pattern, with highs in August, lows in September, and a potential year-end rally. He identifies the 50-week moving average (around $101,000) as a critical level; a weekly close below this could indicate a cycle top.
- Dominance: Bitcoin's increasing dominance in the crypto market suggests capital is consolidating around BTC, potentially drawing liquidity from altcoins.
- Resistance Levels: Current resistance lies between $123,000 and $125,000, with the current all-time high at $125,420. Potential minor resistance exists at Fib Extensions between $127,000 and $128,200, with major resistance around $135,000.
- Intraday Channel: Bitcoin's momentum has formed an upward intraday channel. High RSI levels suggest profit-taking may slow progress, leading to range-bound action between intraday resistance ($124,500 to $125,500) and support ($121,000 to $122,000).
Overall, the technical indicators suggest a bullish outlook for Bitcoin, but analysts advise caution, emphasizing the importance of volume confirmation and key support levels.
