Bitcoin blew up in the first week of October, no doubt.
What’s happening right now might be the needed pause, profit-taking before the next wave higher—at least that’s what analysts say.
BTC is stable versus the greenback but up double digits week-to-date, adding 13 percent at the time of writing.
As all this pans out, it is essential to note that Bitcoin is within a bullish breakout pattern. From the daily chart, the coin is trading at around H2 2021 highs in a buy trend continuation pattern of Q3 2021 upswings.
Bitcoin Market Performance and Price Status
Technically, Bitcoin buyers have the upper end.
Indeed, while the October 8 bar ended up bearish, gliding lower, it was highly expected.
From price action in the daily chart, it is easy to pick out the overvaluation of October 7, causing BTC prices to contract as the market sought equilibrium.
The bar has a long upper wick suggesting selling pressure build-up and the inability of bulls to push back.
This points to weakness and potentially a retest of September 2021 highs of around $53k.
Still, looking ahead, the pullback could offer a chance for aggressive traders to double down in anticipation of bullish continuation as set in motion by rampant buyers of this week.
If that’s the case and Bitcoin buyers flow back, the coin may tear higher towards $60k in the short term.
Conversely, losses below $53k may see BTC prices slid back, syncing with losses of September in a continuation pattern that could result in a hammering.
Then, Bitcoin may crater to $42k in continuation of selling pressure of late Q3 2021.
Therefore, it is imperative buyers take charge, sustaining prices above $53k even if there is a retracement from this week’s highs over the weekend.
Bitcoin Bull Flag, Springboard for $60k
One trader on Trading View expects BTC prices to tear higher, surging above the bull flag visible in the 4HR chart.
Per the analyst’s view, BTC prices are trapped inside a descending channel.
Despite selling pressure, the uptrend is defined as sellers who haven’t mustered the strength to reverse this week’s gains.
Accordingly, a break above the bull flag would be the fuel to propel BTC towards $60k in the medium term.
BTC Prices Retracing on Profit-Taking, Bullish above $53k
On Twitter, one trader thinks that losses of October 7 spilling over to yesterday is due to profit-taking.
#BTC/USDT#Bitcoin witnessed profit-booking on Oct. 7 but the bears could not pull the price below the breakout level at $52,920, which is a positive sign. The bulls tried to resume the up-move on Oct. 8 but the long wick on the day’s candlestick suggests selling at higher levels pic.twitter.com/Zn09mWNBH0
— Raymond Kevin 🥇 (@ngjeslnocd) October 8, 2021
As mentioned before, there are hints of overvaluation as a whole bear bar is above the upper BB.
This signals an overstretched market, and the possibility of a correction printing out even with a bullish breakout is high.
However, as long as BTC prices are above $53k—September 2021 highs—buyers are safe and in the driving seat.
Bitcoin Euphoria Cooling Off In an Accumulation before a Swing High
On YouTube, one trader notes that because BTC prices are still accumulating more than 50 hours after the strong spring points to strength.
In his view, Bitcoin bulls are back in control, allowing traders to pick up on dips in anticipation of more gains above this week’s highs of around $55.5k.
The present support is at $53k-54k—as per the Ichimoku Cloud—energizing bulls.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author and are not financial advice. Do your research.
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