Bitcoin sentiment is slowly turning bullish on both fundamental and technical fronts. September, a historically bearish month for bitcoin and crypto, is over. True to its fame, the month saw Bitcoin drop by -9.50%.
What will October hold for the King of Crypto? Let’s find out.
Last week’s analysis saw Bitcoin possibly form a bottom in the $19k-20k range. The support is strong and might take devastatingly negative news (or manipulation) to drive the price below this point.
Bitcoin opened the month at $20,049 and has been on a rollercoaster since then. The asset peaked price for the month came on September 13, 2022, at $22,781. The price then fell sharply, a staggering -20.34% from this high, before finally starting to consolidate. Our prediction for this week was bullish, with a tone of consolidation
The price is currently at $19,589, slightly above last week’s prediction, but still inside a tight consolidation pattern that began September 19. There might be a larger consolidation play (blue box) here. However, we won’t see it for another week or so. For now, it is more of speculation.
Bitcoin price is currently on the upper side of the smaller consolidation pattern (red box). If today’s daily candle closes above $19,633, BTC could see a rise to $20,142 and then to $21,611.
On the other hand, BTC could also drop down, keeping up with the consolidation pattern. This chart pattern indicates that institutional market makers are suppressing the price as they horde. At the same time, they get to sweep up all the buy stops and sell stops from traders before finally picking a direction to push the price in.
The price is currently at the 21-day EMA. This indicator might act as a resistance for Bitcoin. Since we are consolidating, it makes much more sense for the price to drop to the $18,500 range this coming week.
The month of October is historically positive for BTC price, as the asset begins recovering from September lows.
Current Price: $19,589
Verdict Next Week: Bearish
Verdict October: Bullish
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.