Bitcoin (BTC), the largest cryptocurrency by market capitalization, has captivated the financial world with a remarkable 6% surge as it kicked off the third week of October. This bullish momentum has sparked enthusiasm among crypto investors and analysts, with speculations swirling around a potential move to the $70,000 mark.
Bitcoin Reclaims Key Support Levels
As the week commenced, Bitcoin reclaimed crucial resistance levels, marking a significant milestone following its impressive 6% surge from Sunday. This positive movement propelled BTC from the $62,000 support zone to retest the $66,000 mark by Monday morning. This upward trajectory has turned Bitcoin’s October returns green, boasting a 3.17% monthly increase, as reported by Coinglass.
Crypto analyst Rekt Capital has been closely monitoring Bitcoin’s recent movements, underscoring the cryptocurrency’s ability to reclaim a two-month downtrend as newfound support. Since the start of October, BTC has successfully retested a downtrend line dating back to late July, bouncing off this trendline for two consecutive weeks. This action has effectively transformed the range into a support zone.
Furthermore, the analyst highlighted Bitcoin’s success in retesting several key levels, including what was described as a “volatile retest” of the 21-week Bull Market Exponential Moving Average (EMA). “Notice how the bottom of the green boxed area is confluent with the July Downtrend retest, and the retest of the 21-week EMA is confluent with the top of the green box,” the analyst elaborated. Similarly, analyst Ali Martinez observed that BTC is making yet another attempt to reclaim the 200-day Moving Average after four consecutive rejections in the past two months.
BTC Challenges August Highs
Rekt Capital noted that BTC has established the $58,000-$61,000 range as a reliable support area throughout the year. This accomplishment is particularly noteworthy as it occurred at a Higher Low compared to last month’s downside wicking lows and August’s downside wicking lows. In recent retests of key levels, Bitcoin has also challenged the August highs, around $64,200, suggesting a potential weakening of this level as resistance.
The analyst emphasized that BTC is retesting the multi-month weekly downtrend channel top, which is also showing signs of weakening as resistance. This month, the flagship cryptocurrency successfully tested the channel’s range lows as support, marking a seven-month confluent support with the previous all-time high (ATH) area. However, a weekly close above the downtrend channel’s top is crucial for BTC to break out of this pattern.
A weekly close above August highs, followed by a successful retest of this level, would exert significant buy-side pressure on the Downtrending Channel Top. This pressure could intensify if BTC achieves a daily close above $64,200. Furthermore, a daily close above $65,000 and a successful reclaim of the range as a support zone could propel BTC’s price towards the $70,000 resistance zone. The analyst noted that whenever Bitcoin closed the day above this level, the cryptocurrency typically moved within the $65,000-$71,350 range in the subsequent days.
As of this writing, BTC is trading at $65,812, reflecting a 4% and 10.3% surge on the weekly and monthly timeframes, respectively. This trend provides a compelling narrative for Bitcoin’s future, as investors keenly watch for further developments in the cryptocurrency’s journey towards new heights.
