Traditionally, September has been a tumultuous period for Bitcoin [BTC], often characterized by notable downward trends.
However, the primary cryptocurrency managed to uphold a relatively steady price level, hovering close to its current psychological resistance point. Should this pattern continue, a more optimistic trajectory could manifest in October.
Bitcoin encounters consecutive downtrends
Bitcoin has seen successive declines over the last three days, currently trading at around $58,650.
The descent initiated on September 14, subsequent to Bitcoin’s surge above its psychological threshold in the preceding trading session. During that phase, BTC witnessed a surge of over 4%, reaching approximately $60,543.
This upward momentum briefly propelled BTC into a bullish phase, with its Relative Strength Index (RSI) climbing to roughly 50. However, the RSI now hovers near the neutral mark, suggesting a weakening bullish trend.
Bitcoin: Potential October upsurge ahead?
Transitioning into October, Bitcoin’s price lingered near crucial technical thresholds. The 50-day moving average, depicted by the yellow line, stood at $59,495.25, while the 200-day moving average, represented by the blue line, was positioned at $63,997.09.
Bitcoin was trading proximate to the 23.6% Fibonacci retracement level, about $58,104.92, indicating probable resistance. Conversely, the $55,000 level emerged as a notable support base, based on Fibonacci extensions.
If BTC manages to surpass the 50-day moving average around $59,500 and sustains its momentum, it could potentially aim for the 200-day moving average at $63,997, a pivotal resistance juncture.
Encouraging signals from the MACD and a neutral Relative Strength Index (RSI) hint at a plausible upward movement in October, particularly if bullish sentiment resurfaces.
An upswing towards the $63,000 range might trigger FOMO (fear of missing out), potentially propelling BTC to revisit its historical peak.
Exchange supply trend displays a marginal upturn
Recent Santiment analysis indicated a slight increase in Bitcoin supply across exchanges. Despite this uptick, trading volume has largely maintained stability, operating within a consistent range.
As of the latest data, the collective BTC supply available on exchanges totaled approximately 1.8 million.
In light of recent market downturns, this upward trend in supply could imply a heightened likelihood of notable upward movement in October, setting the stage for a prospective rally.