Bitcoin Price Flirts With $59K: Analyst Urges It’s Time to Accumulate Bitcoin and Altcoins
Anjali Belgaumkar3 Oct 20242 min read
Since last week, there’s been a focus on Bitcoin’s price action. Amid rising geopolitical tensions, Bitcoin faced a setback and is now teetering on the edge of breaking below the crucial $60K mark. But how far could Bitcoin fall? Analyst Virtual Bacon identified key levels for potential corrections: around $62,500 and between $58,800 to $60,000.
In the charts, the critical support and resistance levels are the 200-day EMA and the 21-week EMA. The bull market support band sits between $61,000 and $62,500, and while some may think the market has turned bearish after breaking below this band, it’s important to remember that these signals are based on weekly candles.
How To Identify A Bullish Breakout?
Ideally, the analyst suggests waiting for two weekly candle closes to confirm any trends. If Bitcoin closes above $63,000 by the end of the week, it could indicate a bullish reversal, while a wick into the support band followed by a close above could also be a positive sign. Therefore, the long-term weekly support has not yet been definitively broken, and further monitoring is necessary.
Bitcoin Below $60k: An Opportunity?
The analyst explained the importance of the Bitcoin bull market support band and the 200-day exponential moving average (EMA), both around $60,000. This includes previous support and resistance levels, particularly around the $59,900 mark. He said that the recent three-candle pattern is a significant consolidation signal, hinting at a potential price reactions within this range. The analyst believes this area presents a good opportunity for buying Bitcoin and altcoins, as altcoins typically follow Bitcoin’s price movements.
Will Bitcoin Retest $50k?
The market has been in a downtrend since March, characterized by lower highs and lower lows. However, recent price action shows signs of a potential shift, with the possibility of forming a new uptrend. The analyst suggests that to confirm this, Bitcoin needs to make higher highs and higher lows moving forward.
If Bitcoin closes below $58,000 on a daily basis, or below $50,000 weekly, it could indicate trouble for the expected uptrend. The analyst is starting to buy within the $59,000 to mid-$50,000 range, suggesting that this area provides a favorable risk-to-reward ratio for potential gains.
