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Can Bitcoin Defend the Upward Trend? October holds hope

In order to maintain the medium-term uptrend, Bitcoin (BTC) has to defend two crucial moving averages (MAs), but it does not currently look like this mission will be successful for the market leader.

In its latest market update, the trading platform Decentrader warns that the bulls in the higher regions are no longer as powerful as they were a few days ago.

But not a ‘Golden Cross’?

Accordingly, Bitcoin fell further over the weekend, which means that the price is currently just under 45,700 US dollars. This undercuts the important 200-day MA at 45,900 US dollars, and the lead over the 50-day MA at 45,200 US dollars is extremely narrow.

Decentrader expert Filbfilb is of the opinion that a significant jump over both moving averages is needed to maintain the general upward trend of the last few weeks and months.

“In order for Bitcoin to remain on the upswing, these moving averages must be skipped over and successfully defended. Just like in the weekly chart, a downturn below the 50-day MA would not be good, especially if the 20-week MA (yellow line at just under 42,000 US dollars) is also undercut, ”as the analyst judges.

The 50-day MA and the 200-day MA were actually about to train a “Golden Cross”, which is usually interpreted as a very good sign. The sudden crash at the beginning of the week literally thwarted this calculation.

“The crash came shortly before the ‘Golden Cross’, where the 50-day MA overlaps the 200-day MA,” explains Filbfilb. To this end he explains:

“This is usually a very good sign for the crypto market, especially for Bitcoin, which is why ‘Golden Crosses’ often sell off and ‘Death Crosses’ are bought again. So the most recent crash actually came as no surprise. “

Bitcoin price chart (Bitstamp) with 50-day MA and 200-day MA. Source: TradingView

Another reason for optimism is that the 61.8% retracement level is just under $ 38,000 from the record high of $ 64,500. So this brand is likely to be a solid support that should take off even a more severe downturn.

Will October get better again?

As Cointeelegraph reports, the crypto experts remain confident in the long term despite the current weak phase.

Because while September is traditionally a weak month for Bitcoin, there are much better cards in prospect for the next month.

“We assume that the US $ 60,000 mark can be reached again at the beginning of the fourth quarter, whereupon another downturn will follow and a new record run is pending at the end of the year,” Filbfilb sums up.

This new record run could even lead to $ 100,000, if the much-cited stock-to-flow (S2F) forecasting model is to be believed.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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