Let’s take a look at the chart and try to figure out what this might signal:
After a significant increase, during which Bitcoin set a new all-time high, the price showed its correction. Over the weekend, the chart dipped to $59,500. However, buyers quickly brought the price back above the important psychological level of $60,000.
In addition, a head and shoulders reversal pattern began to form on the chart. At the moment, the price is drawing the right shoulder and may soon be corrected back down to the support level of $60,000. There is a strong uptrend line near the same level. So far, buyers are confidently holding on to this support.
Nevertheless, the possibility of a breakdown of this level during the 3-wave Elliott correction cannot be ruled out. If sellers are able to break through the $60,000 level, the price may go to the nearest support level, which is in the $56,000 – $57,000 range. After this, Bitcoin may turn around, as it will significantly unload indicators and the excitement around it will subside.
The market situation is still uncertain. To show growth, the Bitcoin price must overcome the $63,500 mark and gain a foothold above it, first on the 4-hour, and then on the daily timeframes. In this case, the uptrend will continue and will have every chance for further growth.
In addition, the monthly candlestick will close this week. Bitcoin has already risen by 42% in October and this is one of the best results over the past year so far. Therefore, we do not exclude the fact that the first cryptocurrency may move sideways by the end of the month. At the same time, if the monthly candlestick closes at the current levels or above $57,700, then the likelihood of growth will significantly increase.
We are now seeing a flow of capital from Bitcoin to altcoins. This is why many cryptocurrencies have started to show growth in recent days, while the price of Bitcoin has stalled. It is possible that the state of uncertainty will prevail this week. Nevertheless, we have given possible scenarios so you can prepare for this.