Focus turns to Bitcoin bulls amid prolonged price bottom
Bitcoin (BTC) is still looking for a catalyst to spark upward price momentum at a time when both bulls and bears seem to have an almost equal share in dictating the flagship cryptocurrency’s price action. Investors are also closely monitoring the asset for a possible price bottom following the sustained sideways trading in the $18,500 and $21,400 area.
Based on the recent price movement, News from Kitco analysts Jim Wyckoff on October 25 pointed out that while bulls should be credited for stabilizing Bitcoin’s price, they still have a crucial role to play in supporting a price uptrend.
According to the analyst, Bitcoin technicals indicate that a possible price bottom is imminent, and bulls need to take advantage.
“Bulls have stabilized prices recently by moving them into a sideways trading range. There are strong technical support levels just below the market, suggesting a market bottom is in place. However, the bulls need to show renewed strength soon to produce a new price uptrend on the daily chart, Wyckoff said.
Bitcoin Technical Analysis
The possible price bottom for Bitcoin is also highlighted by technical analysis that overwhelmingly suggests buying the asset. In particular, a summary of the technicals shows that 11 are for buy, 10 are neutral, and only five agree to sell the asset.
An overview shows the moving averages of nine in support of buying; one is neutral, while five shows bearishness that suggests a “sell”. Oscillators are predominantly neutral at nine, while two are for buy.
Bitcoin’s Crucial Resistance
Elsewhere, as reported by Finbold, crypto trading expert Michaël van de Poppe suggested that the $19,500-$19,600 level is Bitcoin’s “decisive resistance” area. According to Poppe, if the barrier is breached and BTC consolidates, it could trigger a possible short squeeze that drives the asset towards $20,700 and potentially $22,400.
It’s worth mentioning that Bitcoin’s breakout potential also depends on how the asset reacts to the macroeconomic environment. With Bitcoin trading in tandem with the stock market, investors will be closely observing how the overall digital asset market is affected.
However, Bitcoin is showing a level of maturity, registering a drop in volatility. Interestingly, Bitcoin’s 20+ day rolling volatility has fallen below the S&P 500 and Nasdaq indices for the first time since 2018.
Meanwhile, at press time, Bitcoin was trading at $19,600, having recorded gains of nearly 2% over the past 24 hours.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
