Categories: Market

October 25 Bitcoin technical analysis

While Bitcoin (BTC) hit a new all-time high of $ 67,000 in the week of October 18-22, it fell slightly over the weekend. The week’s closing price was about $ 800 below the opening price.

In the weekly timeframe, there are mixed signals between technical indicators and price action. Most technical indicators are bullish, but price action still looks bearish.

BTC remains below the ascending support line formed since the uptrend began in March 2020. Failure for that line to recover is a bearish sign, suggesting that it is now likely to act as a resistance.

Despite this move, the technical indicators are still bullish.

The MACD, formed by the short and long-term moving averages, is in positive territory and rising. This means that the short term trend is moving faster than the long term trend.

Additionally, the RSI is above 50 and rising. This is also a sign of an uptrend as an RSI above 50 is considered an uptrend.

Finally, the super trend line is bullish (green circle). Supertrend is an indicator that uses volatility to determine the direction of the trend. Since the BTC price is above this line, the trend is considered bullish.

Weekly BTC / USDT Chart | Source: TradingView

Potential double top pattern

A closer look shows that a potential double top is forming. The double top is often viewed as a bearish pattern, which means that a bearish trend reversal is possible.

In addition, the second upper part has a long wick at the top and resembles a shooting star candle (red symbol). This is also a bearish candlestick pattern showing that sellers at higher levels are in control.

The validity of the pattern depends on where the weekly closing price is. If it closes above the absolute high (straight line), the current decline is just another test of the uptrend. When closing below the support (gray), the double point is confirmed.

As a result, the weekly chart shows an uncertain outlook for price development.

Weekly BTC / USDT Chart | Source: TradingView

Critical support zone

The assistance levels are shown more clearly in the daily timeframe.

The first zone is at $ 56,550. This is the 0.382 Fib retracement support that measures the most recent part of the upside move (highlighted).

If this zone breaks, a second support zone will be found between $ 52,300 and $ 53,300. That range is the 0.5 Fib retracement level, which measures the same portion of the upward move, and the 0.382 Fibonacci retracement level, which measures all of the upward move since June 22nd prior support and resistance.

BTC / USDT daily chart | Source: TradingView

Count waves

There are two possible wavenumbers in the current scenario. The first indicates that BTC is on the third wave of an upward pulse, while the second indicates that BTC is on the second wave. A bullish impulse is created by five waves, three of which are an upward move (1-3-5).

The first scenario is more bullish as it shows that BTC is forming a 1-2 / 1-2 wave. This is a pattern where the uptrend will accelerate if the movement continues. Currently, BTC is in wave three (white). The number of partial waves is displayed in orange and identifies BTC in the second partial wave. This can cause it to drop to the $ 52,300 to $ 53,300 support area described above.

BTC / USDT daily chart | Source: TradingView

The second scenario is a bit more bearish and shows that BTC is still in the second wave (white) of the same bullish pulse.

In this case, a bigger correction is expected, falling to $ 47,700 or $ 43,100 is likely. These are the 0.5 and 0.618 fib retracement support levels and the horizontal support area.

BTC / USDT daily 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.

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

38 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.