On October 16th, the BTC price experienced a significant inflow of buying pressure, resulting in a decisive breakout above a downward-sloping resistance trendline. This trendline had been guiding the coin’s three-month correction, and its breach signaled a new potential recovery phase. However, the surge was largely driven by unconfirmed rumors regarding the approval of Bitcoin’s spot ETF, raising questions about the sustainability of this breakout.
Also Read: Bitcoin Hits $29K, SEC In Constructive Talks With Bitcoin ETF Issuers: Bloomberg Analyst
Is Current Recovery Heading to $32000?
- The daily candles with higher price rejection indicate supply pressure around $29000
- The BTC price sustainability above $28000 could set a 12% upswing
- The intraday trading volume in Bitcoin is $24 Billion, indicating a 373% gain.
Source-Tradingview
Since the early weeks of September, the Bitcoin price embarked on a relief rally, rebounding from a psychological support level of $25,000. Over the past five weeks, the coin has appreciated nearly 13.5%, reaching a current trading price of $28,380.
During this uptrend, the coin executed a significant breakout from a resistance trendline, which had been framing the three-month-long correction. Despite this, the lack of confirmation regarding the speculative Bitcoin ETF news hindered the coin’s progress beyond the $29,000 mark.
Currently posting an intraday loss of 0.2%, the BTC is poised for a retest of the newly established support level. This retest will be crucial in determining whether the breakout can be sustained and whether the recovery can be extended.
Should bullish momentum continue, this coin could target a 12% gain, reaching the $32,000 level.
1 BTC to USD = $28694.821 1.11% (24h) Buy / Sell
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Bull Trap May Push BTC Price Back to Correction Track
If the recent surge proves to be merely sentiment-driven and fails to maintain levels above the breached trendline, we could see the BTC plunge back below. Such a breakdown would invalidate the October 16th breakout, categorizing it as a ‘bull trap,’ thereby ramping up selling pressure in the market. In this bearish scenario, the coin could experience a 10% drop, potentially revisiting the $25,000 support level.
- Average Directional Index: An uptick in the daily ADX slope indicates the buyers have the strength to prolong the recovery trend.
- Exponential Moving Average: The flattish 50-and-200-day EMA slope reflects the sideways trend.