Robust technical position: For the past few months, resistance has been formed by the upper edge of a descending channel, which Bitcoin is currently trading close to. Right now, the price is just shy of $64,000. Bitcoin might move closer to the much-anticipated $70,000 target if there is a clear breakout above this resistance and a fresh upward trend begins.
Supporting moving averages: The price of Bitcoin is holding above significant exponential moving averages, which are the 26 EMA 100 EMA and 200 EMA. This indicates bullish momentum. Around $61,000, a solid support zone is formed by the convergence of these moving averages. The upward path of least resistance will persist as long as Bitcoin maintains its position above these levels.
Market attitude: Risk-on attitude is evident in the larger financial markets, where equities are doing well and hedge funds are becoming more exposed to tech stocks. This general bullish atmosphere is probably going to spread to the cryptocurrency space, increasing the likelihood that Bitcoin will see a significant price shift this month.
Because investors are seeking greater returns, risk assets like Bitcoin have historically benefited from this monetary environment. The allure of Bitcoin as a hedge against inflation is still strong – as long as inflation concerns persist.
Historical pattern: Historically, October has been a favorable month for Bitcoin. This month has seen the beginning of five bull runs in the past, and many market observers think this year will be no different. As Bitcoin has already posted one of its best Septembers on record, the momentum could carry forward into October.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
