Bitcoin (BTC) Aims for New Highs After Bullish Week

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In Brief
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Bitcoin (BTC) increased considerably during the week of Sept 27 – Oct 3, going from a low of $40,753 to a high of $49,228.

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It’s currently in the process of reclaiming the $47,850 area. If successful, it could likely lead to a sustained upward move.

Weekly BTC movement

The weekly chart shows that BTC increased considerably during the week of Sept 27-Oct 3, creating a bullish engulfing candlestick in the process.

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However, it’s still trading below the ascending support line from which it broke down at the beginning of May. Previously, the support line had been in place since the upward move began in March. Bitcoin is also facing resistance from the supertrend resistance line (red icon). 

There are several bullish signs in place such as the increasing MACD and RSI. The latter is above 50. 

Therefore, the weekly time frame provides mixed signals for the direction of the trend.

BTC reclaims resistance

The daily chart shows that BTC has moved above the $44,000 area, which previously acted as resistance. It did so by creating a bullish candlestick on Oct 1. 

Technical indicators have also turned bullish. The MACD has given a bullish reversal signal and is moving upwards. Similarly, the RSI has already moved above 50.

BTC is facing resistance at $47,850. This is a horizontal area and coincides with the daily Supertrend line (red icon). If it manages to clear this level, it’s likely to head towards new highs.

The six-hour chart shows that BTC has broken out from a descending parallel channel that had previously been in place since Sept 7.

This is a sign that the previous correction has ended and BTC is now moving upwards. 

Furthermore, we can see that the previously outlined $47,850 resistance area is also the 0.618 Fib retracement resistance level of the entire downward move. 

BTC has already moved above this resistance and is in the process of validating it as support. If it’s successful in reclaiming this level, it’s likely to continue moving upwards. 

Future movement

Finally, the two-hour chart shows that BTC has broken out from an ascending parallel channel. This is a sign that a bullish impulse is in progress. 

After a retest of the resistance line of the channel, the most likely scenario could see BTC increasing towards $52,200-$54,200. This target range is found using the length of wave one (black) and an extension on wave one (white).

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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