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As October unfolds, Bitcoin enthusiasts have reason to celebrate as the cryptocurrency marks its second consecutive green candle this month. This achievement follows a notable 10% price increase, a development that crypto analyst TradingShot considers a positive indicator for future investments in Bitcoin. Let’s delve into why this is seen as a favorable buy signal and explore the potential market trajectory for the flagship cryptocurrency.
The Significance of Consecutive Green Monthly Candles
According to TradingShot’s insights shared on TradingView, the occurrence of two consecutive green monthly candles is traditionally viewed as a strong buy signal for Bitcoin. Analyzing a multi-year chart, TradingShot suggests that historical patterns reveal consistent market rallies following the appearance of these two straight green candles.
Historical Patterns and Market Cycles
During the bull run of 2021, Bitcoin experienced three consecutive green candle occasions, followed by a clear accumulation phase. Similarly, the 2017 bull run saw multiple instances of such green candle formations. The current market cycle appears to mirror the 2021 pattern, with Bitcoin previously recording three straight monthly green candles from January to March, preceding another accumulation phase. As explained by TradingShot, this trend suggests a favorable buying opportunity, with the potential for a third consecutive green candle in November.
Positive Outlook for November
There are additional reasons to anticipate another monthly green candle for Bitcoin in November. Historically, Bitcoin often enjoys positive monthly returns when October ends on a high note. Furthermore, the upcoming US elections are expected to bring market stability, potentially spurring a Bitcoin rally. Economist Alex Krüger has speculated that a Trump victory could propel Bitcoin to a rapid ascent, potentially reaching $90,000. However, there remains a possibility of a drop to $65,000.
Current Market Analysis and Predictions
Currently, Bitcoin is trading at approximately $69,155, according to the latest chart data from TradingView. As the market conditions evolve, it’s crucial to consider key price levels that could influence future movements.
Critical Support Levels for Bitcoin
Renowned analyst Justin Bennett, in a recent post, emphasized that Bitcoin’s dip below $70,000 could spell trouble for bullish investors. The critical support level stands at $69,000, and should this threshold fail, Bitcoin could revisit lows around $65,000. Bennett also speculates that the highs from March and October, near $73,700, are unlikely to remain untested. Before reaching those levels, a retest of $65,000 is possible.
Potential for a New All-Time High
Similarly, crypto analyst Ali Martinez has highlighted the importance of maintaining the $69,000 level for Bitcoin to reach a new all-time high (ATH). Should this support hold, Martinez predicts that Bitcoin could rally to $78,000.
At the time of writing, Bitcoin’s price is trading around $69,700, reflecting a nearly 1% increase over the past 24 hours, according to CoinMarketCap data.
