Bitcoin advanced higher following a steady rebound from a two-week retracement. It looks prime for a big price movement with a new bullish formation. The reverse would be the case if this formation fails to play.
Bitcoin started this month in a correction mode and later found support after two weeks of drops. This came as a retest of the breakout of the two-month resistance line – which later became a support after a nice rebound.
After that, the price increased consistently for two weeks due to an enhanced volume inflow and increased demand – immensely contributed by the bulls’ reinforcement. As a matter of fact, these periods marked the most volatile buying session for the primary cryptocurrency since June.
Despite facing several hurdles on the way up, BTC managed to test exactly a daily high of $30,986 – marking its highest price level in three months. It retraced briefly from there to a current trading price of $30,600.
In total, it has charted a notable 30% gain since the price recovered from the $24,901 level on September 11.
Aside from that, it has formed a double-bottom pattern above this recovery level. This bullish formation is capable of rallying the price to $39,000 and potentially $44,000 if the price flips the current yearly high of $31,804 level – printed on July 13.
Should this bullish formation fail under $31,000, BTC could roll back to form a head-and-shoulder pattern for a breakdown. With the current sentiments across the space, BTC is more likely to sustain momentum than lose it.
Bitcoin’s Key Levels To Watch
Looking forward to another leg up above the $31,000 resistance level, BTC must conquer the crucial $31,804 resistance level before surging to a new yearly high at $33,000.
If Bitcoin defies the odds by rolling back, the hourly support levels to consider for drops are $30,000, $30,240 and $29,710. The main support level for selling lies at $28,618 and perhaps $27,195.
Key Resistance Levels: $31,000, $31,804, $33,000
Key Support Levels: $30,240, $29,710, $28,618
- Spot Price: $30,600
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.