Bitcoin (BTC) rebounded significantly in the week of September 27 through October 3, rising from a low of $ 40,753 to a high of $ 49,228. It is currently in the process of reclaiming the $ 47,850 zone. If successful, this could lead to a sustained upward movement.
Weekly BTC movement
The weekly chart shows that BTC recovered significantly in the week from September 27th to October 3rd, creating a bullish engulfing candle.
However, it is still below the rising support line that the price broke in early May and that has formed since the uptrend began in March. Bitcoin is also facing resistance from the super trend line (bearish – red symbol).
There are some bullish signs as the MACD and RSI are rising. The following indicator is above 50.
Hence, the weekly timeframe provides mixed signals for the near-term direction of the trend.
Weekly BTC / USDT Chart | Source: TradingView
BTC recalls key levels
The daily chart shows that BTC has moved above the $ 44,000 region that previously acted as resistance. It did so by creating a large bullish candle on October 1st.
The technical indicators also turned bullish. MACD has shown a bullish reversal signal and is rising. Likewise, the RSI has risen above 50.
BTC faces resistance at $ 47,850. This is the horizontal resistance area and also where the super trend line (bearish) remains (red symbol). If it breaks this level, BTC will likely move towards new highs.
BTC / USDT daily chart | Source: TradingView
The six-hour chart shows that BTC is breaking out of a descending parallel channel that has been in place since September 7th.
This is a sign that the previous correction is over and BTC is now moving up.
Additionally, we can see that the $ 47,850 resistance area described earlier is also the 0.618 fib retracement resistance of the entire down move.
BTC has broken this resistance and is about to confirm it as support. If this level can be confirmed again, it should continue to rise.
BTC / USDT 6-hour chart | Source: TradingView
Finally, the two-hour chart shows that BTC is breaking out via an ascending parallel channel. This is a sign that the price is in a short term uptrend.
After retesting the channel’s resistance level, the most likely scenario is that BTC is heading towards the $ 52,200 to $ 54,200 zone. This target area is found by projecting wavelength one (black) onto the bottom of wave 4 and the outer fib retracement of 2.61 onto wave one (white).
BTC / USDT 2-hour chart | Source: TradingView
You can see the Bitcoin price here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto