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Bitcoin (BTC), the largest cryptocurrency by market capitalization, started the third week of October with a 6% daily surge. The performance of BTC increased bullish sentiments among crypto investors and market watchers, who suggested that it might be ready to move to $70,000.
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Bitcoin Recovers Key Support Levels
Bitcoin started the week finding key resistance levels after a 6% rise in value on Sunday. This performance saw BTC move from the $62,000 support area to retest the $66,000 support area on Monday morning.
After the recent performance, Bitcoin’s return for October so far has turned green with a monthly return of 3.17%, according to Coinglass data. Crypto analyst Rekt Capital highlighted Bitcoin’s recent moves, noting that BTC was able to retrace its 2-month lows as support.
According to the analyst, the flagship cryptocurrency retested the downtrend line that dates back to late July and early October. BTC successfully retested and bounced off the trend line for two consecutive weeks, turning the range into support.
Additionally, the analyst pointed out that Bitcoin has made several successful retests, including a “volatile retest” of the 21-week Bull Market Exponential Moving Average (EMA).
“Note how the low of the green box corresponds to the July Downtrend retest and the retest of the 21-week EMA corresponds to the high of the green box,” the analyst said.
Similarly, Ali Martinez emphasized that BTC is currently making another attempt to recover the 200-day Moving Average after four consecutive rejections in the past two months.
BTC Challenges August Highs
Rekt Capital noted that BTC strengthened the $58,000-$61,000 range as a year-round support zone: “It did so at a lower level compared to last month’s downside wicking lows and August’s downside wicking lows.”
In addition, the analyst said that Bitcoin challenged the high of August, at about $ 64,200, after the recent reassessment of important levels. He suggested that the recent movement of BTC is a “clear indication” that the August level is “weak as resistance.”
Rekt Capital pointed out that BTC is retesting the multi-month weekly downtrend channel, which is also weak as resistance. The leading cryptocurrency has successfully tested the range of the channel as support this month.
The downside was the 7-month converging support and the previous high (ATH). However, the analyst noted that BTC should have a weekly close above the lower channel to break out of this pattern.
A weekly close above the August high, followed by a successful retest of this level, “will put significant buying pressure on the Downtrending Channel Top,” which could be accelerated if BTC’s daily close remains above $64,200.
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Furthermore, a daily close above $65,000 and a successful retracement of the range as a support zone could send the price of BTC to the $70,000 resistance zone. The analyst noted that whenever Bitcoin closed the day above this level, the cryptocurrency moved within the range of $65,000-$71,350 in the following days.
As of this writing, BTC is trading at $65,812, up 4% and 10.3% on a weekly and monthly basis.
Featured image from Unsplash.com, Chart from TradingView.com