Key Points
- Bitcoin [BTC] has maintained a stable price close to its current psychological resistance level despite consecutive declines.
- Indicators suggest a potential price breakout and a positive movement for Bitcoin in October.
Despite September typically being a turbulent month for Bitcoin [BTC], the cryptocurrency has managed to maintain a relatively stable price, staying near its psychological resistance level. This stability could potentially lead to a more positive trend in October.
Bitcoin’s Recent Price Fluctuations
Over the last three days, Bitcoin has seen consecutive declines, with its trading price around $58,650 at the time of writing. This downward trend started on September 14th, after Bitcoin’s surge above its psychological barrier in the previous trading session. During this session, Bitcoin rose over 4%, reaching approximately $60,543.
This increase briefly pushed Bitcoin into a bullish phase, with its Relative Strength Index (RSI) reaching around 50. However, the RSI currently sits on the neutral line, indicating a potential weakening of the bull trend.
Potential October Rally for Bitcoin?
As we move into October, Bitcoin’s price hovers near key technical levels. The 50-day moving average is represented by the yellow line at $59,495.25, while the 200-day moving average, marked by the blue line, is at $63,997.09.
Bitcoin is trading near the 23.6% Fibonacci retracement level, around $58,104.92, suggesting potential resistance. On the downside, the $55,000 level has emerged as the next significant support, based on Fibonacci extensions.
If Bitcoin can break above the 50-day moving average around $59,500 and maintain momentum, it could potentially reach the 200-day moving average at $63,997, an important resistance level.
Positive indications from the MACD and a neutral RSI suggest a possible upward movement in October, especially if bulls regain control. A surge to the $63,000 range could trigger FOMO (fear of missing out), potentially driving Bitcoin to retest its all-time high.
Bitcoin Supply on Exchanges
Recent analysis on Santiment shows a slight upward trend in the supply of Bitcoin on exchanges. Despite this increase, the trading volume has remained relatively stable, staying within the same threshold. At the time of writing, the total Bitcoin supply on exchanges was approximately 1.8 million.
Given the recent market declines, this increase in supply could signal a higher probability of significant upward movement in October, as Bitcoin may be poised for a potential rally.
