Bitcoin (BTC) fell to a one-week low on October 23 in a comeback to support the resolve of tested bulls.
BTC/USD 1-hour chart. Source: TradingView
BTC Price Consolidation Fails to Damage Optimism
BTC price weakness on Bitstamp is $60,063, according to data from Cointelegraph Markets Pro and TradingView.
At the time of writing, BTC/USD is down about 1.5%, adding to existing strength and holding above $69,000 as resistance.
While market observers had anticipated this scenario, renowned trader and analyst Rekt Capital suggested that the weekly close would be the key breakpoint for short-term trend strength.
He uploaded his weekly chart to
“The previous channel top resistance (red) is now being retested as new support (green). “Retesting is in progress,” he said.
“For a retest to be successful, Bitcoin would need to close the week above the top of the channel (black) (with downtrends allowed in the meantime).”
BTC/USD 1 week chart. Source: Rekt Capital/X
Popular trader and market analyst CryptoBullet utilized the Moving Average Convergence/Divergence (MACD) indicator to provide a bullish view for those concerned about the rise in BTC price.
“Weekly MACD strengthens for the first time since October 2023!” He summed up the day.
MACD is a trend strength indicator that uses two moving averages to compare recent price movements with longer-term movements. Crossovers provide information about the strength of new price movements.
CryptoBullet claimed this time around that the environment for BTC/USD is more reminiscent of 2021. This was just a month before the pair reached an all-time high of $69,000.
“An identical vertical rally (MACD high) followed by a painful mid-term correction” corresponds to Bitcoin’s range-bound price action since its all-time high in March.
“$BTC is now breaking out of a multi-month sideways trend with MACD strengthening again,” he concluded.
“IMO what we will see is a new ATH for price and a lower high for MACD.”
BTC/USD chart comparing MACD data. Source: CryptoBullet/X
Bitcoin, Ethereum are still “well supported”
As Cointelegraph continues to report, macro volatility catalysts for cryptocurrencies are focused on the upcoming US presidential election, the Federal Reserve’s next meeting on interest rates on November 7, and economic data.
relevant: Bitcoin ETF outflows $79 million, 2-week bull market ends amid BTC price ‘sideways’
Trading firm QCP Capital, in its latest bulletin for subscribers to its Telegram channel, claimed that the key data ahead of the election and Fed events will be the non-farm payrolls (NFP) due to be released on November 1.
“As uncertainty persists about the labor market, all eyes are on next Friday’s NFP release,” he wrote.
“As the last NFP report before the next Fed meeting, it will play an important role in shaping expectations about the Fed’s next rate move.”
QCP added that both Bitcoin and the largest altcoin, Ethereum (ETH), “are well-supported by potential upside ahead of the release of employment data and the election.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.