Bitcoin Price: Understanding the RSI and Market Dynamics
Bitcoin Price Soars – Bitcoin (BTC) experienced a significant rebound on October 12, reaching $63,237 and approaching multi-day highs as market behavior mirrored the previous weekend’s trends. Data from Cointelegraph Markets Pro and TradingView indicated that BTC’s price action neared $63,500, marking a 1.5% increase on the day.
Market Dynamics: BTC Price Action
During the Wall Street trading session on October 11, Bitcoin made notable progress after testing the $60,000 support level for most of the week. The cryptocurrency showed resilience against newly reported inflationary pressures in the U.S., even as market participants adjusted their expectations regarding future interest rate cuts.
Popular trader Skew commented on the market dynamics, stating, “Initial low was swept & clearly inability to breakdown so naturally there’s a reversion.” His analysis highlighted the relative strength index (RSI) scores above 50 and increased spot demand, both of which are essential indicators for a potential upward movement.
Key Resistance and Support Levels
According to Skew, the monthly and weekly open levels, currently at $62,850 and $63,330 respectively, are critical for buyers to reclaim in order to challenge the $65,000 mark. This makes the current price range a significant battleground for Bitcoin.
Trading resource Material Indicators analyzed the exchange order book liquidity and identified additional BTC price upside targets just below $65,000. “FireCharts shows Bitcoin support stacking above $63k, and it looks like bulls want to challenge the 200-Day Moving Average,” the resource stated, indicating a bullish sentiment in the market. “If they are successful, clearing the 200-Day MA, they will attempt to R/S flip Technical Resistance at the 2021 Mid-Cycle Top at $64.9k.”
Bullish Sentiment Ahead
Despite the precarious nature of weekend BTC price gains, trader and analyst Michaël van de Poppe remained optimistic, expecting bullish momentum to continue into the next week. “Bitcoin took the liquidity beneath $59.5k and quickly ran up,” he noted. “Probably a few days of consolidation, before next week is going to be significantly up. Breakout of $64k / $65k is the big breakout we’re looking for before new all-time highs (ATH) tests and altcoin runs begin.”
Stablecoin Market Cap and Bitcoin’s Bull Run Potential
Adding to the bullish sentiment, Bitcoin analytics account Bitcoindata21 provided a positive outlook, noting a metric that suggests a repeat of bull market behavior. The overall market cap of major U.S. dollar stablecoins relative to Bitcoin, which had been in a consolidation phase amid a downtrend, appeared poised to head lower, as shown in a chart shared on X. “Those trend lines are so clean,” the commentary stated, suggesting an impending upward movement for Bitcoin.
“Once the purple line breaks to the downside, Bitcoin is going to rip. Then wait for the downtrend to reverse (see yellow trend channels)… that’s when the top is in!”
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