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Bitcoin (BTC) Price Moves Above $30,000 – Is Yearly High Just Around the Corner?

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Written by
Valdrin Tahiri

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Edited by
Ryan Boltman

23 October 2023 09:03 UTC
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  • The Bitcoin (BTC) price nearly reached a new yearly high, hitting $30,985 on October 23. This is slightly below the $31,804 yearly peak.
  • The weekly and daily timeframe Relative Strength Index (RSI) are both bullish, supporting the continuation of the ongoing bullish trend.
  • Despite the bullish BTC prediction, a rejection from the $31,300 resistance area could lead to a significant drop to the closest support.
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The Bitcoin (BTC) price reached a high of $30,985 on October 23, just slightly below the yearly high of $31,804.

BTC trades below the main horizontal resistance area at $31,300. Will it break out above it?

Bitcoin Nearly Reaches Yearly High

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The weekly timeframe technical analysis shows that the Bitcoin price had increased since September (green icon), when it bounced at the long-term $25,000 horizontal support area.

The increase accelerated last week, and BTC created a large bullish engulfing candlestick. This is a type of bullish candlestick when the entire decrease from the previous period is negated in the next one.

Bitcoin reached a high of $30,985 before falling slightly. While the yearly high is at $31,900, the highest weekly close of the year is at $31,600.

Therefore, if the current price were to hold until the end of the week, it would be the highest weekly close this year.

Since the price has yet to reach this close, some traders are not convinced that the bull run has begun.

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There is also mixed news regarding Bitcoin. The price enjoyed its strongest weekly return in 17 weeks, possibly linked to growing buzz about the Bitcoin spot Exchange-Traded Fund (ETF).

However, a key developer in the Lightning Network resigned after discovering a significant security vulnerability in the network.

Bitcoin (BTC) Weekly Price Movement
BTC/USD Weekly Chart. Source: TradingView

The weekly RSI is bullish. Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage. Readings below 50 suggest the opposite. The indicator is above 50 and increasing, both signs of a bullish trend.

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More importantly, the RSI broke out from its bearish divergence trendline (green line), which initiated the decrease from the yearly high,

Will New BTC Yearly High be Reached?

The daily timeframe analysis shows that the BTC price broke out from the $29,000 horizontal resistance area. The area had been in place since August. This breakout accelerated the rate of increase.

The BTC price is now approaching the $31,300 resistance area. This is the final resistance area before the yearly high.

The daily RSI supports the ongoing increase since it is above 50 and moving upwards. While the indicator is overbought, it has not generated any bearish divergence yet.

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If the BTC price breaks out, it can reach the next resistances at $33,700 and $36,000, 10 and 18% above the current price, respectively.

BTC Price Prediction
BTC/USDT Daily Chart. Source: TradingView

Despite this bullish Bitcoin price prediction, a rejection from the $31,300 resistance area can lead to a 60% drop to the closest support at $29,000.

For BeInCrypto’s latest crypto market analysis, click here.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.