With Bitcoin (BTC) seemingly resuming its bullish momentum, a trading analyst has offered insights regarding the asset’s next possible stop.
In this context, the maiden cryptocurrency has broken through key resistance levels, signaling a potential rally towards the new record high of $100,000, but several barriers need to be cleared in the short term, MarketMaestro noted in an X post on October 18
This outlook is backed by the fact that Bitcoin appears to be breaking out of a multi-month consolidation pattern in a move reminiscent of the bullish “head and shoulders” formation.
According to the expert, Bitcoin’s left shoulder, head, and right shoulder formed between early 2021 and mid-2024. The asset’s price recently broke through the neckline of this pattern, around the $65,000 mark. Indeed, this spot is considered a pivotal moment for a bullish breakout.
The analyst’s projection indicates that Bitcoin is poised to rally toward the $100,000 mark, a psychological and technical target. However, MarketMaestro stressed that the next weekly close will be crucial in determining whether the breakout will sustain itself or turn into a false upside move.
“The breakout we’ve been waiting for has finally arrived! The weekly close is crucial! The $100,000 rally,” he said.
More Bitcoin technicals hint at a $100,000 rally
Another review by pseudonymous X user Stockmoney Lizards complimented the analyst’s outlook. In a post on October 19, Stockmoney Lizards stated that after consolidating for several months, an imminent Moving Average Convergence Divergence (MACD) cross on the weekly chart suggests a bullish shift. Historically, such MACD crosses often precede significant price surges.
In the previous instance, a similar MACD cross in late 2023 led to a 160% rally. The consolidation phase, depicted by a range between $40,000 and $60,000, might soon end as momentum builds. Should Bitcoin break the current resistance, this MACD cross could trigger another sharp uptrend, with long-term targets approaching $100,000.
For the short term, Ali Martinez observed that Bitcoin might face some sell-off based on the technical setup. Specifically, he noted that the TD Sequential had triggered a sell signal on the four-hour chart, indicating potential downside pressure.
Additionally, a bearish divergence is evident on the Relative Strength Index (RSI), where price action is rising, but momentum is weakening, suggesting exhaustion in the recent upward move.
As things stand, Bitcoin aims to clinch the $70,000 mark, with enthusiasts hoping the digital asset will continue to ride the “Uptober” momentum, a period when Bitcoin typically rallies in October as indicators suggest that the bull market might be back. Indeed, Bitcoin came close to reaching this milestone on October 18, when it traded at $69,000, the highest price since July.
This development comes as general market sentiment around the leading cryptocurrency remains subdued, evidenced by a slowdown in Google searches for ‘Bitcoin.’
Currently, Bitcoin is at a critical juncture: breaking past $70,000 could pave the way for further gains, while a drop below $65,000 might signal trouble for the asset.
It is worth noting that Bitcoin faces significant fundamental factors, such as the upcoming U.S. elections, where a Donald Trump victory is considered bullish. In fact, the recent Bitcoin price surge has aligned with rising odds of a potential Trump win, as the Republican candidate has emerged as a vocal supporter of the crypto sector.
Bitcoin price analysis
Bitcoin was trading at $68,113 by press time, with daily losses of less than 0.1%. On the weekly chart, BTC is up 8%.
At its current valuation, Bitcoin shows potential for continued bullish momentum in both the short and long term, as it stays above the 50-day and 200-day simple moving averages. However, monitoring the RSI, which is nearing overbought conditions, is essential.
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