Bitcoin has had a good month of October so far, rising from lows of $60,400 to current levels near $67,650.
Can the OG cryptocurrency rely on “Uptober” to consistently push BTC/USD above the key technical resistance zone?
We take a closer look at the daily chart!
Bitcoin (BTC/USD) daily Chart by TradingView
Bitcoin has seen gains in the past few weeks, as forecasts for “Uptober,” a historical time when bitcoin sees significant price increases, have mixed with crypto-friendly presidential candidate Trump improving his odds in closely watched and risk-taking polls. Which encouraged the prospect of further interest rate cuts by the Federal Reserve.
Easier policy expectations from other major central banks have also helped improve risk sentiment and demand for Bitcoin in the markets.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on Bitcoin and USD yet, it’s time to check the economic calendar and stay up to date with daily fundamental news!
But BTC/USD, which has come a long way from the $60,400 pivot point levels, is now facing a major resistance area.
We are talking about the $69,000 area, which corresponds to the R1 pivot point ($69,025) and the July resistance area on the daily time frame.
More importantly, the $69K price (good) lines up with the top of a descending channel resistance that has not been broken since March of this year.
Will BTC/USD maintain its long-term downtrend?
Bitcoin is showing hesitant candles near its current levels but watch for bearish candles and continued trading below $68,000. This exposes BTC/USD to a potential drop to the $64,000 inflection point, if not the psychological level of $60,000.
Of course, Bitcoin HODLers may be taking a break.
If BTC/USD sees another upward swing and sustained trade above $70,000, we could be looking at new record highs for BTC/USD.
Whichever direction you end up trading, don’t forget to practice proper risk management and stay aware of top-notch market triggers when trading this. good luck!