Bitcoin prices have fallen by nearly 5% in the past five days and are currently trading at $26776. On the weekly chart, there is a fierce competition between bulls and bears, while the daily time frame depicts the bullish outlook for Bitcoin, suggesting the possibility of a rapid rebound
Bitcoin prices have fallen by nearly 5% in the past five days and are currently trading at $26776. On the weekly chart, there is a fierce competition between bulls and bears, while the daily time frame depicts the bullish outlook for Bitcoin, suggesting the possibility of a rapid rebound.
On the weekly chart, Bitcoin prices show multiple higher highs and higher lows, presenting a bull market trend. Although BTC is attempting to break through the key low of $25941 in June, this upward trend is facing challenges. Although the closing price of Zhou Zhu was lower than this level, the attempt to break through failed due to short sellers not following suit. Due to the absence of short positions, Bitcoin long positions remained dominant and formed a potential local top of $28592.
On the surface, two temporary conclusions can be drawn and why traders may have strayed in the wrong direction. If $28592 is a local top, then the next trend should result in a decisive weekly closing price below $25941. But if bulls still dominate, Bitcoin prices should continue to rise and reach a higher level than the July high of $30616.
For the first result, according to historical evidence, breaking through a critical low point may trigger fluctuations ranging from 20% to 60%, which were similar events in 2021 and 2022. On the contrary, to maintain bullish control, it is necessary to create a higher high point above $30616, which may trigger an attempt to retest and overcome the 2021 weekly low of $31777.
The daily chart of Bitcoin (BTC) records the main progress. After failing to break through the weekly level of $25941, Bitcoin prices showed a slight upward trend. In the past month, BTC has created three higher lows and two higher highs, with a current trading price of $26783.
Therefore, the next few weeks are crucial for observing whether Bitcoin will rise.
On the chart, it can be seen that in the last week of September, Bitcoin prices fell below the support level of $26500. In this failed bearish attempt, the relative strength index (RSI) briefly exceeded 50, while the momentum oscillation index (AO) almost fell below zero. However, the rapid recovery has driven both RSI and AO higher.
At present, Bitcoin prices have fallen below the support level of $27400, RSI has fallen below 50, and AO is close to zero. If history repeats itself, investors can expect prices to quickly rebound above the recent level of $27400 and attempt to reach a higher high than the October 2 high of $27992.
If successful, Bitcoin bulls may push the price up to $30000.
Short sellers may find the weekly Bitcoin price outlook attractive, but they need to be patient. If investors want to buy on dips, they need to closely monitor the daily support level of $25900.
In order to continue controlling the bull market rebound in 2023, Bitcoin prices need to rise slightly and ultimately form a weekly candlestick with a closing price above $30616. This will be a key indicator to determine whether bulls can maintain market dominance.
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