Bitcoin (BTC), the largest cryptocurrency by market capitalization, has recorded a daily 6% surge since the third week of October. BTC’s performance has sparked optimism among cryptocurrency investors and market observers, who suggest that BTC is ready for a move to $70,000.
Bitcoin Recovers Key Support Level
Bitcoin started the week by recovering a key resistance level after a 6% surge in price on Sunday. This performance saw BTC retesting the $62,000 support zone on Monday morning.
Following recent performance, Bitcoin’s October returns have been in the green so far with a monthly return of 3.17%, according to Coinglass data. Crypto analyst Rekt Capital highlighted Bitcoin’s recent moves, noting that BTC was able to recover from a two-month downward trend towards support.
According to analysts, the flagship cryptocurrency has retested a downward trend line dating back to the end of July since the start of October. BTC successfully retested and bounced off the trendline for the second week in a row, turning the range into support.
The analyst also pointed out that Bitcoin has had several successful retests, including a “volatility retest” against the 21-week bull market exponential moving average (EMA).
“Notice how the bottom of the green box area joins the July downtrend retest and the 21-week EMA retest joins the top of the green box,” the analyst added.
Likewise, Ali Martinez highlighted that BTC is currently making another attempt to regain its 200-day moving average after being rejected four times in a row over the past two months.
BTC Challenges August Highs
Rekt Capital noted that BTC has solidified the $58,000-$61,000 range as a support zone throughout the year. “We did that at higher lows compared to the downward lows of last month and the downward lows of August.”
Moreover, the analyst noted that Bitcoin recently challenged the August high of around $64,200 after retesting key levels. He suggested that BTC’s recent moves are a “clear sign” that the August levels are “weakening into resistance.”
Rekt Capital noted that BTC is retesting the top of a multi-month weekly downtrend channel, which is also weakening into resistance. The flagship cryptocurrency successfully tested the lower range of the channel with support this month.
The range low found support merging with the previous all-time high (ATH) area for seven months. Nonetheless, the analyst noted that for BTC to break out of this pattern, it would need to have a weekly close above the high of the downtrend channel.
A weekly close above the August high and a successful retest of this level “would put significant buy-side pressure on the top of the downtrend channel,” which could accelerate if BTC’s daily close exceeds $64,200.
Moreover, if the daily closing price breaks above $65,000 and successfully reclaims the range towards the support zone, BTC price could head towards the $70,000 resistance zone. The analyst noted that whenever Bitcoin closed the day above this level, the cryptocurrency moved within the $65,000-$71,350 range the following day.
As of this writing, BTC is trading at $65,812, up 4% and 10.3% on the weekly and monthly terms.
Source: NewsBTC.com