Bitcoin (BTC) is still looking for a catalyst to trigger upward price momentum at a period both bulls and bears appear to have an almost equal stake in dictating the flagship cryptocurrency’s price action. Investors are also closely monitoring the asset for a possible price bottom following the sustained sideways trading in the range of $18,500 and $21,400.
Based on the recent price movement, Kitco News analysts Jim Wyckoff on October 25 pointed out that although bulls should be credited for stabilizing Bitcoin’s price, they still have a crucial role to play in supporting a price uptrend.
According to the analyst, Bitcoin technicals indicate a possible price bottom is imminent, and bulls need to take advantage.
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“Bulls have stabilized prices recently by moving them into a sideways trading range. There are strong technical support levels that lie just below the market, which suggests a market bottom is in place. However, the bulls need to show fresh power soon to produce a fledgling price uptrend on the daily chart,” Wyckoff said.
Bitcoin technical analysis
The possible price bottom for Bitcoin is also highlighted by technical analysis that overwhelmingly suggests buying the asset. Notably, a summary of the technicals shows 11 are for buying, 10 are neutral, and only five align with selling the asset.
A breakdown shows the moving averages at nine in support of buying; one is neutral, while five exhibit bearishness suggesting a ‘sell.’ Oscillators are predominantly neutral at nine, while two are for buy.
Bitcoin’s crucial resistance
Elsewhere, as reported by Finbold, crypto trading expert Michaël van de Poppe suggested that the level of $19,500-$19,600 is Bitcoin’s “crucial resistance” range. According to Poppe, if the barrier is breached and BTC consolidates, it could spark a possible short squeeze propelling the asset towards $20,700 and potentially $22,400.
It is worth mentioning that Bitcoin’s potential to break out also depends on how the asset reacts to the macroeconomic environment. With Bitcoin trading in tandem with the stock market, investors will observe keenly how the general digital assets market is affected.
However, Bitcoin is exhibiting a level of maturity, recording a drop in volatility. Interestingly, Bitcoin’s rolling volatility for over 20 days has fallen below the S&P 500 and the Nasdaq indices for the first time since 2018.
Meanwhile, by press time, Bitcoin was trading at $19,600, having recorded gains of almost 2% in the last 24 hours.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
