Bitcoin ($BTC) has experienced sustained upward price movement in recent weeks, according to the latest Bitcoin price analysis characterized by rising lows.
It recently achieved a critical resistance zone at the intersection of the 100 and 200-day moving averages. That is an important price point for Bitcoin, where it could experience a massive pullback. It could trigger a downward trend or a breakthrough, and head for the $30k mark.
Bitcoin Daily Chart Analysis
The Bitcoin daily chart shows that Bitcoin experienced a consolidation at the $25K mark before it gained momentum and began an uptrend. Its bullish movement pushed prices towards the $28K resistance, a key convergence point for the 100, and 200-day moving averages.
Given the significance of this resistance point, there is a good chance of this turning into a sharp downward trend. However, there is a small chance that it holds and moves above the moving average, in opposition to the bearish sentiment in the market.
Near-Term Prediction
The Bitcoin price analysis shows BTC has faced a major barrier of $28,000, and it is expected to experience massive price action soon, impacting its year-end close. Its price is currently stuck at around $27,511. This recent price action followed a swift climb from $24,900 to $28,613 before it pulled back below $28,000. Since then, volatility has been high, with bearish and bullish forces fighting for dominance.
While there is some positive sentiment that it could push beyond $28,500 with the target of a $29,000 resistance, the most probable outcome is that near-term volatility will continue. Regardless of the outcome, keeping a close eye on price action in the coming days is crucial, as volatility is expected to keep rising.
The expected near-term scenario is a gradual ascend to $30K once the major resistance point of $28,500 is broken. However, there are signs the market is preparing for a bearish reversal. That could retest the lower support level of around $25,800. This will likely happen if the selling pressure keeps rising due to panic selling.
Bitcoin On-Chain Activity
Following the recent rapid ascent of BTC prices, network activity has increased. The on-chain transaction count is one of the metrics used to check this activity. Historically, the Bitcoin price analysis has shown that on-chain transaction count positively correlates to Bitcoin’s price. Increased activity often leads to a price rally.
According to the latest chart by Blockchain.com, there has been a rise in this metric since the beginning of the upward movement to $30K. However, there was a recent drop in the transaction count. The drop is not a good sign and could negatively impact the market soon unless there is a reversal in the trend in the coming weeks.
Bitcoin Price Outlook
Historically, October has been positive for Bitcoin price. There is a good chance that the trend from previous years could repeat. However, the positive trend will take some breaks as the bullish rally builds up. The signal for a bullish trend will be the triangle break, which could help Bitcoin reach $30K in the coming days or weeks. As an investor, the best strategy is to have an in-depth understanding of crypto and Bitcoin.
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