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Cryptocurrency Analyst Jesse Olson A second consecutive Heikin Ashi signal has been highlighted on the weekly chart of Bitcoin (BTC). This comes despite Bitcoin’s recent rally to Up to $58,000indicating that an upward reversal may be on the horizon.
What does Heikin Ashi mean for Bitcoin?
while Spotlight Second in a row Hi Ash too Olson also noted on Bitcoin’s weekly chart that there is no wick on the uptrend, suggesting that the downtrend is likely to continue. The crypto analyst has previously explained how the absence of a wick on the uptrend indicates strength in Downward momentum.
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According to Olson’s accompanying chart, Bitcoin could come under further downward pressure and drop to Less than $40,000This bearish analysis comes amid Bitcoin’s recovery as its price surged to $58,000 in the last 24 hours. While it remains to be seen whether this is a comfortable bounce or a bullish reversal, Olson’s analysis suggests that it is likely to be a comfortable bounce.
However, cryptocurrency analyst Daan Crypto has Proposed Bitcoin needs to successfully break $60,000 to achieve a bullish reversal and target new highs in This market cycleMeanwhile, in contrast to Olson’s bearish analysis, Mikybull Cryptocurrency Analyst It has made more bullish predictions for Bitcoin.
In X (formerly Twitter) mailCryptocurrency analyst says Bitcoin has completed a bullish diamond formation. In line with this, Mikybull Crypto says he believes Bitcoin has bottomed out if the bull market continues.
elsewhere X PostMikybull Crypto highlighted a bullish divergence that recently formed on the Bitcoin chart, similar to the divergence that occurred in September 2023. Following the September 2023 bullish divergence, BTC saw a significant surge, eventually paving the way for a New All Time High (ATH) In March of this year. So, something similar could happen again as Bitcoin attempts to reach new highs.
Bitcoin price may start rising after September
Taking into consideration Bitcoin Historical Downtrend In September, the cryptocurrency community was optimistic that Bitcoin could begin its long-awaited price rally as soon as the month ends. In a recent analysis, Cryptocurrency Analyst Rekt Capital He explained why the leading cryptocurrency is likely to post huge gains in October.
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The crypto analyst noted that the only monthly losses Bitcoin has experienced in October were in 2014 and 2018, when it recorded monthly losses of -12.95% and -3.83%, respectively. He added that those were bear markets. However, Bitcoin is in a slump. Half yearHistorically, it heralds bull marketAccordingly, Bitcoin may witness an upward journey in October and until the end of the year, especially with the upcoming US presidential elections in November.
At the time of writing, Bitcoin is trading at around $56,600, up over 3% in the past 24 hours, according to CoinMarketCap data.
Featured image created using Dall.E, chart from Tradingview.com