Bitcoin (BTC) price closed September on a bullish note, ending the month up nearly 5%. The beginning of October brought a significant price increase and this is still ongoing.
Bitcoin price closed the weekly candlestick in green
Technical analysis from the weekly timeframe shows that BTC price has increased since the week starting September 11. This increase confirms the horizontal zone of $25,300 as support.
The increase continued to accelerate last week, leading to the creation of a bullish engulfing candle.
This is a type of candle in which the entire loss of the previous period has been erased. This is considered a positive sign for the future trend. However, despite the recovery, Bitcoin has not been able to erase the losses of the August 17 drop (red symbol), where BTC created a bearish engulfing candle.
The candle started at $29,200, slightly below the $30,500 horizontal resistance area.
The weekly RSI is rising. RSI is a popular indicator used by traders to measure momentum and make decisions to buy or sell their assets.
A reading above 50 and sloping upward is considered bullish, while a reading below 50 is considered bearish.
The indicator is currently above 50 and rising, both of which are signs of an uptrend. The continued increase shows that the previous drop below 50 (red circle) was just a deviation, another sign regarding the bullish trend.
BTC Price Prediction: Clear the resistance trendline and regain upward momentum
Technical analysis from the daily timeframe also provides a bullish outlook. Bitcoin price has broken above the descending resistance line, indicating that the previous correction is complete.
BTC is trading inside the 0.5 and 0.618 Fib retracement resistance zones at $28,350-$29,150.
Whether it can overcome or be rejected will be a key factor in determining future trends.
Like the weekly timeframe, the daily RSI supports a bullish continuation above 50 and is moving up.
If the price closes above the 0.618 Fib retracement level, it could rally another 10% to the yearly high near $31,500.
Despite this bullish prediction, a rejection by the 0.5-0.618 Fib zone would likely result in a 7% decline. This would take Bitcoin price down to the previous descending resistance line at $26,500.