Situation of the Bitcoin in the October Rally

Situation of the Bitcoin in the October Rally

Let us check the crypto market. The price of Bitcoin will see a retest of twelve-thousand dollars in the short term.

In the first half of October, the BTC (Bitcoin) price broker upward. Thus, it resulted in a rally from $10,500 to $11,700. Nevertheless, the momentum might shift once more. It is because strength diminishes across the cryptocurrency market.

Also, a similar setup happened before the latest upward break of Bitcoin with sideways consolidation in Bitcoin. Thus, it caused altcoins to drop south heavily, especially the Defi sector.

Nevertheless, significant support at eleven-thousand dollars is now a must-hold level to resume the bullish momentum. It may find difficulty to clear current levels. It is because renewed coronavirus lockdowns are spooking investors.

Still, traders remember the previous pandemic fear of March. It caused prices of many assets cross-market (including Bitcoin) to drop severely.

The daily chart of Bitcoin shows a strict breakout above eleven-thousand dollars. It was critical for any bullish momentum.

For the bullish case to hold weight, sustaining support at eleven-thousand dollars is a must. It makes a test of the upper range at twelve-thousand dollars increasingly likely.

Many investors tend to factor in a potential sell-off of the 150,000 Bitcoin involved in the Mt.Gox fiasco each time a new deadline nears.

Bitcoin

Nevertheless, today, the deadline for the release of those Bitcoins was once again extended. It diminished those fears at least until Dec. 15, 2020.

The smaller timeframe is showing a similar picture with the $11,000-11,150 area. That area is a critical zone to hold as support.

A sharp dive will happen toward the $10,600 region if that area is lost. The event below $10,000 area can return as a topic of discussion.

The $11,000-11,200 level is a critical zone to hold. Holding there would warrant a test of the upper region of the range. It will line out in the upper chart of $11,800-11,900 and potentially even $12,100.

But has the Bitcoin enough strength to break through that resistance level. Breaking twelve-thousand dollars might see a massive bullish move. That will most probably push up values around the entire crypto market.

The total market capitalization is still inside a range. The resistance zone between $380-405 billion defines the upper part of the range. $265-285 billion is the lower part.

Before further continuation occurs, previous resistance levels get tested for support.

All those indicators are critical signs of support and further continuation upward. It is because they define bear/bull markets.

That is the situation with the Bitcoins.

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