The dominance of Bitcoin on the market has increased again and is already 42.6%. Let’s take a look at the chart of the first cryptocurrency and try to understand in which direction it will move in the coming days:
Yesterday, the chart bounced off the $40,900 level and buyers quickly pushed the price towards $43,500. Once again, the $40,000 – $41,000 zone survived. At this level of support we see the formation of large interest, that does not allow Bitcoin to fall below. This is a positive sign for the chart.
As a result of the current growth, the price has practically come to the border of the downtrend. The bulls could not overcome it and BTC rolled back down. $44,500is the key level at the current moment and the nearest major resistance is located here.
All this rise the importance of this level; in case of a breakdown, Bitcoin will be able to interrupt the downtrend that exists since the beginning of September. This will mean the formation of a reversal pattern. If it happens, the price can come in the range of $47,000 – $48,000.
After yesterday’s gains, the RSI also showed a significant increase. This is important as there is a strong convergence at a 4-hour timeframe. Three local highs on the chart are progressively decreasing, while the same highs on the RSI are increasing constantly. This pattern is very important now and over time it will work in the direction of growth.
The monthly candlestick has been closed yesterday. In September, the price of Bitcoin fell by 6.96%. Thus, for the fifth year in a row, the first month of autumn negatively affects the price of Bitcoin and the entire crypto market. But October, on the contrary, has been one of the best months in terms of chart growth during previous years. All this may correspond to the upcoming upward reversal of the cryptocurrency market.