Bitcoin (BTC) increased considerably during the week of Sept 27 – Oct 3, going from a low of $40,753 to a high of $49,228.
He is currently in the process of reclaiming the $ 47,850 area. If successful, it could likely lead to a sustained upward move.
Weekly BTC movement
The weekly chart shows that BTC rose significantly during the week of September 27 through October 3, creating a bullish engulfing candlestick in the process.
However, it’s still trading below the ascending support line from which it broke down at the beginning of May. Previously, the support line was in place since the bullish movement started in March. Bitcoin is also facing resistance from the supertrend resistance line (red icon).
There are several bullish signs such as increasing MACD and RSI. The latter is greater than 50.
Therefore, the weekly time frame provides mixed signals for the direction of the trend.
BTC regains resistance
The daily chart shows that BTC has moved above the $ 44,000 area, which previously acted as resistance. It did so by creating a bullish candlestick on Oct 1.
Technical indicators have also turned bullish. The MACD has given a bullish reversal signal and is moving upwards. Likewise, the RSI is already above 50.
BTC is facing resistance at $47,850. This is a horizontal area that coincides with the daily Supertrend line (red icon). If it manages to clear this level, it’s likely to head towards new highs.
The six-hour chart shows that BTC exited a descending parallel channel that had previously been in place since September 7th.
This is a sign that the previous correction has ended and BTC is now moving upwards.
Also, we can see that the previously described $ 47,850 resistance area is also the 0.618 Fib retracement resistance level of the entire downward movement.
BTC has already moved above this resistance and is in the process of validating it as support. If he succeeds in recovering that level, it is likely that he will continue to rise.
Future movement
Finally, the two-hour chart shows that BTC has broken out from an ascending parallel channel. This is a sign that a bullish momentum is underway.
After a retest of the resistance line of the channel, the most likely scenario could see BTC increasing towards $52,200-$54,200. This target range is found using the length of the first wave (black) and an extension on the first wave (white).
