8 October 2024
Last week, Bitcoin (BTC) experienced considerable volatility, climbing to a two-month high of $66,500 before falling back to a low of $59,500 at the end of the week. However, the leading cryptocurrency has resumed its upward trajectory, hitting $64,500 on Monday.
Higher Highs And Bullish Trends
Crypto analyst Doctor Profit recently released a report commenting on the recent price movements, noting that Bitcoin has successfully printed a new higher high for the first time since reaching its all-time high (ATH).
According to the analyst, this development challenges the bearish narrative that had suggested Bitcoin would continue to decline, based on a theory of higher highs and lower lows. “Their own theory has given them a slap right in the face,” he remarked, suggesting that the recent price action should serve as a wake-up call for some skeptics.
Doctor Profit also noted that the higher high/lower low pattern tends to break down during strong sideways movement, particularly when key moving averages are involved.
The analyst highlighted Bitcoin’s recent retest of the 50-day moving average (MA50), placed at the $60,000 level met with strong bullish momentum, reinforcing his view that Bitcoin remains bullish. Doctor Profit plans to establish new long positions around the $60,400 level, should the market revisit that area.
In terms of short-term targets, Doctor Profit sees $66,000 as a clear objective, expressing confidence in the potential for Bitcoin to reach this level soon. He also noted the significance of upcoming economic data, with crucial Producer Price Index (PPI) and Consumer Price Index (CPI) inflation reports scheduled for release this Thursday and Friday.
Bitcoin Consolidation Phase Nearing End?
Adding to the optimistic outlook for the BTC market, another analyst, TedPillows, recently indicated that Bitcoin’s current consolidation phase may be nearing its end after nearly six months of trading below the $70,000 level.
He compared previous market cycles and noted that BTC consolidated for 161 days after the 2016 halving and 175 days after the 2020 halving.
With the current consolidation phase ongoing for 168 days, Pillows suggests that Bitcoin is either on the verge of exiting this phase or is already at its conclusion. This analysis hints at the possibility of Bitcoin achieving a new all-time high above the previous record of $73,700 reached in March of this year.
When writing, the largest cryptocurrency on the market is trading at $63,835, up 2% in the last 24 hours and maintaining its 17% gain for the month.
Featured image from DALL-E, chart from TradingView.com