Bitcoin Price Surge: What’s Next for BTC After Weekend Rally?
Bitcoin price witnessed a notable surge over the weekend, jumping 4% and briefly touching a local peak just below $64,000 on Monday. While this move initially appeared bullish, it may not be as promising as it seems. Over the past eight hours, BTC has retraced by 1.4%, signaling that the recent gains may soon be reversed. In this article, we explore the current outlook for Bitcoin and what could be on the horizon.
Bitcoin Price Analysis: Potential for a Deeper Pullback?
Analyzing the four-hour chart for Bitcoin (BTC), we can see a clear retest of the daily resistance zone, which stretches from $63,987 to $65,044. The rejection from this area has already triggered a 1.4% correction, and there is potential for further downside movement. Support levels to watch are $61,837 and $60,346, which could serve as stabilizing points if the price continues to drop.
The Relative Strength Index (RSI) currently hovers around 60, indicating that Bitcoin is not yet in overbought territory. This suggests that a short-term correction could push BTC back into the aforementioned resistance zone, potentially causing the RSI to hit overbought levels. A correction could occur as early as October 9 or 10, possibly sending Bitcoin’s price down toward the $60,000 support level.
If BTC struggles to push higher and declines further, traders should expect a period of consolidation or a battle between buyers and sellers around the key psychological level of $60,000. If the market fails to hold this level, a more significant decline could unfold. In this scenario, Bitcoin might revisit support levels between $57,970 and $57,201, which would mark a 9.6% drop from its current price of $63,166.
Analyst Predicts Massive Upside for Bitcoin
Despite the recent pullback, some analysts remain optimistic about Bitcoin’s future price action. A crypto analyst named Jay recently posted a bullish outlook on X (formerly Twitter), predicting a potential 30% rally, which could push BTC to $77.7K by the end of October.
Jay’s analysis is based on historical data, noting that BTC typically forms a bottom within the first few days of October, followed by a significant double-digit rally. The most substantial gain in October occurred in 2013 when BTC surged by 70% after hitting a low on the second day of the month.
This view aligns with BTC’s historical October performance, which boasts an average monthly return of 21%. However, investors should exercise caution, as while the general trend for October has been bullish, there have been years with more modest gains, sometimes below 10%.
Additionally, current geopolitical tensions, particularly the ongoing conflict between Israel and Iran, may introduce unforeseen volatility. These developments could disrupt the typical market patterns, making Bitcoin’s trajectory less predictable in the short term.
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