As a seasoned analyst with over two decades of experience in financial markets under my belt, I find myself intrigued by the current state of Bitcoin (BTC). The Heikin Ashi signal, a trend-following indicator, has shown a bearish pattern on BTC’s weekly chart, suggesting that the downside trend might continue. However, it’s important to remember that technical indicators are just tools, and they don’t tell the whole story.
As a crypto investor, I’ve noticed an intriguing pattern in Bitcoin‘s (BTC) performance. Crypto analyst Jesse Olson has pointed out a second consecutive Heikin Ashi signal on the weekly chart, which could indicate a potential bullish reversal, even though Bitcoin has recently surged to $58,000. This suggests that we might be on the brink of an upturn in the market.
What The Heikin Ashi Signal Means For Bitcoin
In his analysis of Bitcoin’s weekly chart, Olson emphasized the second consecutive Heikin Ashi and added that there was no candlewick pointing upward, indicating a possible prolongation of the bearish trend. Earlier, he explained that the lack of an upper wick implies strong momentum moving in the opposite direction, downwards.
According to Olson’s chart, there could be additional pressure on Bitcoin causing it to potentially fall to around $40,000. This pessimistic outlook arises as Bitcoin’s price surged to $58,000 within the past 24 hours. However, it is uncertain whether this rise represents a temporary recovery or a significant bullish shift. Olson’s analysis leans towards it being a temporary recovery.
In contrast to the bearish perspective put forth by analyst Olson, crypto expert Mikybull Crypto presents a more optimistic viewpoint regarding Bitcoin. Specifically, he believes that for Bitcoin to initiate a bullish reversal and target new records in this market cycle, it must first surpass the $60,000 mark successfully.
On their social media platform (previously known as Twitter), a cryptocurrency analyst recently posted that Bitcoin seems to have finished constructing a bullish diamond pattern. Following this analysis, Mikybull Crypto indicated his confidence that the downward trend in Bitcoin may have ended if the bull market continues.
In a previous blog post, Mikybull Crypto pointed out a bullish divergence that has recently appeared on the Bitcoin graph, which resembles one from September 2023. After the bullish divergence in September 2023, BTC saw a powerful surge that eventually led to reaching a new record high (peak) in March of this year. Given this pattern, it’s possible that something similar might occur again as Bitcoin aims for even higher values.
BTC’s Price Rally Could Begin After September
As a researcher, I am keenly observing Bitcoin’s historical trend, noting its bearish inclination in September. However, there seems to be an optimistic outlook within the crypto community that once this month concludes, BTC might initiate its long-anticipated price surge. In my latest analysis, I, too, have found reasons to believe that the flagship cryptocurrency could potentially yield significant gains in October, as suggested by Rekt Capital’s insights.
The crypto analyst noted that Bitcoin’s only monthly losses in October were in 2014 and 2018, when it recorded monthly losses of -12.95% and -3.83%, respectively. He added that those were bear markets. However, Bitcoin is in a halving year, historically ushering in the bull market. As such, BTC could enjoy a bullish ride in October and even to the end of the year, especially with the upcoming US presidential elections in November.
Currently, as I’m typing this, Bitcoin is being exchanged for approximately $56,600, marking an increase of more than 3% within the past day, based on information from CoinMarketCap.
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2024-09-11 00:04