Bitcoin
$12K Bitcoin price back on the table after BTC rallies above $11.4K
On Friday Bitcoin (BTC) price finally managed to break above the symmetrical triangle where the price had been compressing for the last 30 days. After holding the $11,000 level into the daily close, the price rallied to $11,448 on multiple high volume surges.
Cryptocurrency daily market performance snapshot. Source: Coin360
On Oct. 8 Cointelegraph contributor Micheal van de Poppe explained that in his view:
“If the price of Bitcoin breaks through the $11,100-$11,300 resistance zone, further bullishness can be expected towards $12,000. This makes the $11,100-$11,300 area is a critical zone for continuation.”
Currently the price is holding above $11,400 and meeting resistance at $11,489 which is right at the top of the Sept. 3 candle which saw BTC drop 13% to $9,960. This level aligns with the VPVR node extending from $11,400-$11,740, but if the bulls are able to push through this resistance cluster another run at the $12K mark is on the cards.
BTC/USDT daily chart. Source: TradingView
On the daily timeframe, the relative strength index has risen to 65, a bullish signal, and the MACD histogram clearly reflects the current bump in momentum.
As is always the case, day traders should keep a close eye on volume as the lack of it during the last 30-days is the primary reason for Bitcoin price being flat and pinned below $11,000.
Bitcoin price daily performance. Source: Coin360
Ether (ETH) price also took a bullish turn, by piercing a key descending trendline to rally 3.08% to $378.
Ether/USDT daily chart. Source: TradingView
At the time of writing the top altcoin is encountering resistance at $375 where there is a high volume VPVR node extending from $376-$389. If bulls are able to maintain the current momentum and push through this resistance zone, Ether price could run to $419.
As BTC and Ether rallied, the majority of altcoins followed suit with double-digit gains. Cardano (ADA) gained 10.19%, Chainlink (LINK) added 11.4% and Aave (LEND) rallied by 15%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $361.5 billion and Bitcoin’s dominance index is currently at 58.4%.
- Bitcoin has seen some mixed price action as of late, with bulls being unable to take control of its trend in the time following its rally up to $28,500
- The rejection here was quite intense, and it has yet to show any signs of strength in the time following this occurrence
- The fact that bulls have guarded against any deeper drawback is positive because it invalidates the possibility that this recent high is a blow-off top
- One trader is now noting that there is an incredibly bullish indicator that is flashing for Bitcoin
- He points to the cryptocurrency’s monthly RSI, noting that a monthly close above a specific level that it is nearing is historically followed by parabolic moves higher
- In the past, these movements have had an average return of 1,010%, but their size and length seem to diminish with time
Bitcoin and the entire crypto market have declined over the past 12 hours, which appears to be the direct result of the pressure that XRP is placing on the market due to its latest selloff.
Where the market trends in the mid-term likely won’t depend on XRP, which means that this latest round of selling pressure may mark a knee-jerk reaction from investors.
One analyst is noting that Bitcoin’s monthly RSI is flashing an incredibly bullish sign for where BTC trends next.
Bitcoin Struggles to Gain Momentum Following $28,500 Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $26,700.
The crypto has been trading between the upper-$26,000 region and the lower-$27,000 region throughout the past few days.
It has yet to garner enough buy-side support to break above the heavy resistance laced throughout the lower-$28,000 region. For now, this peak could mark a blow-off top.
Indicator Suggests BTC is About to Go Parabolic
One trader explained in a recent tweet that Bitcoin could be on the cusp of seeing a parabolic move higher in the days and weeks ahead.
He points to the cryptocurrency’s monthly RSI as an indicator for this possibility.
“BTC – Monthly RSI. Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”
Image Courtesy of il Capo of Crypto. Source: BTCUSD on TradingView.
The coming few days should shed light on Bitcoin’s trend, as continued weakness could confirm $28,500 as a local high and lead to a deeper retrace.
Featured image from Unsplash. Charts from TradingView.
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