Bitcoin in May 2021 $56,980.12 A trader who correctly predicted the crash of Bitcoin has stated that Bitcoin could start a major price movement next month.
Bitcoin Technical Outlook
The analyst, nicknamed Dave the Wave, suggested in a post on the social media platform X that Bitcoin could begin to break resistance levels as of October 2024. In the chart shared by the analyst, it was stated that Bitcoin was trading in a triangle pattern while consolidating in a wide range. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The analyst also noted that Bitcoin is likely to trade above recent lows, around $52,000, with critical moving average support also in place.
Fibonacci Retracement Level
Dave the Wave put the current multi-month correction into perspective, noting that despite Bitcoin dropping below $50,000 last month, it has only retraced to the 0.236 Fibonacci level. Traders see the retention of this level as support as a strong sign that buyers are stepping in without waiting for lower levels.
Similarities with the Previous Cycle
In a chart shared earlier this month, the analyst noted that Bitcoin may be mirroring its previous cycle and appears poised to breakout based on the timeline of the 2020 cycle.
As of writing, Bitcoin is valued at $56,826, up over 3% on the day.
Analyst comments provide important clues about Bitcoin’s future price movements. In particular, the protection of resistance at Fibonacci levels and the support of moving averages are among the important indicators that investors should pay attention to. Bitcoin’s similarity to previous cycles and holding on to certain technical levels can create a positive atmosphere in the market.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
