Bitcoin Rising to $64.4K Proves Bullish Chart Pattern Is ‘Pocketed’ — Analyst

Bitcoin (BTC) price surged 7.75% from a recent low of $59,815 on October 3 to a monthly high of $64,448 on October 7, marking an optimistic start to a volatile week.

As you can see in the chart below, Bitcoin briefly fell below the 200-day EMA (yellow line) earlier this month, but an immediate recovery of its position above the indicator allowed the price to move higher over the past four days.

Also Read: ‘What is a Leverage-Driven Pump’ — 5 Things to Know in Bitcoin This Week

Bitcoin is “locked in higher lows,” says the analyst.

Bitcoin fell 8.8% between September 30 and October 4, reassessing the psychological level of $60,000. Since then, the price has recovered to nearly $64,000 and is now showing a positive monthly return on investment (ROI).

Crypto analyst Jelle believes BTC’s recent recovery confirms a strong bullish pattern. Bitcoin formed a high high (HH) pattern for the first time in five months when it surpassed $65,000 in late September. Confirmation of a higher low (HL) is now key to the uptrend and the analyst believes Bitcoin is now “locked in” after retesting key resistance/support areas.

Meanwhile, another independent analyst, Titan of Crypto, highlighted a historically bullish weekly golden cross for Bitcoin from 2023. The analyst noted:

“BTC’s current price action closely resembles this time last year, with a fake dead cross followed by a golden cross that sparked a 145% rally.”

Bitcoin price is “correlated” with stablecoin market capitalization.

Despite Bitcoin’s recent recovery, it has fallen 2.87% over the past seven days. This may be due to its relationship with stablecoins. IT Tech, a verified on-chain analyst at CryptoQuant, highlighted the key correlation between BTC and stablecoin market caps. The analyst says:

“Increasing market capitalization of stablecoins (USDT and USDC) are often associated with rising Bitcoin prices, suggesting higher market liquidity and demand.”

Meanwhile, a decline in stablecoin supply could mean increased selling pressure and reduced liquidity, which could lead to a price correction in BTC.

Since September 30, USDT net market capitalization has increased by $161 million, which means it has had a positive impact on the Bitcoin price. However, the total USDC market cap change would be negative $654.83 million, resulting in a total stablecoin net change of negative $493 million.

Therefore, an improvement in stablecoin market capitalization could be a potential signal that Bitcoin price could rise in the coming weeks. Independent investor Mister Crypto also noted the same correlation in his X post, saying:

Bitcoin is looking at a pivotal daily close above $64,000.

From a technical perspective, the chart shows HH and HL patterns, but a daily close above $64,000 is still significant. BTC reached a high of $64,400 a few hours ago, but is currently attempting to close above $64,000.

Bitcoin remains between the $64,130-$63,300 supply zone formed on September 1st. Since spot bids have not participated in the recent rally, swing traders can profit from swing long around this price range.

However, a daily close above $64,000 would be a strong indication of continued momentum as it shows position above the supply zone and a confirmed monthly high.