Bitcoin (BTC) price hit another monthly high of $68,400 on October 16, forming a new high price pattern (HH3) in the market. BTC quickly hit a new weekly high after a sharp hourly correction of 3.41% on October 15. Along with price, BTC’s on-chain data is also showing positive improvement with active addresses indicating positive changes in market demand and user activity.
Bitcoin 1 day chart. Source: Trading View
With the price oscillating near the $70,000 level, analysts are covering a key price range that could lead to a short-term correction or interrupt a six-month downtrend.
Analyst Says Bitcoin Price Is In Window
After Bitcoin hit an all-time high of $73,881 in March 2024, BTC went on a 217-day downtrend, forming a series of higher lows and lower lows interspersed with a descending expanding wedge pattern.
The weekly chart shows BTC’s fourth attempt to break the 217-day upper trendline, which could have an immediate impact on the current price trajectory.
Bitcoin weekly chart. Source: Trading View
Cointelegraph previously reported that the range between $68,300 and $67,300 will be a critical crossing point for BTC that needs to turn into support to interrupt the aforementioned downtrend.
Likewise, veteran trader Peter Brandt highlighted the same range and suggested that Bitcoin price is currently ‘inside the window’. The merchant adds:
“Will Bitcoin escape through the window, or will the window slam shut on its head?”
Bitcoin price analysis by Peter Brandt. Source: X.com
Meanwhile, independent trader BitQuant believes Bitcoin will see a prolonged consolidation between $95,000 and $75,000 after breaking $70,000.
Related: Bitcoin open interest soars to one-year high as BTC price rises toward $68,000
Bitcoin active addresses indicate “positive change.”
Although Bitcoin price may face market volatility in the short term, improving on-chain metrics indicate that a long-term bullish band continues to develop.
Bitcoin has seen a significant surge in active addresses since early September, according to data from CryptoQuant.
As shown below, the Bitcoin Active Address Momentum indicator has reversed its downward trend and has been rising for the past 45 days.
Bitcoin active address momentum chart. Source: CryptoQuant
When the active address indicator exceeds both the 30-day and 365-day moving averages, it is a sign of positive changes in user engagement and improving demand. According to CryptoQuant analysis,
“Historically, active user engagement has been an important parameter in every bull cycle, suggesting that demand is returning to the network.”
With Bitcoin’s dominance hitting a three-and-a-half-year high, bullish sentiment surrounding the largest cryptocurrency asset continues to build after a rough start to October.
Related: Bitcoin profit-taking nears $74,000 peak as speculators send $500 million to Binance