Oct 23, 2023: Bitcoin (BTC) saw its value rise to a multi-month high of $31,000 over the weekend, marking its fourth visit to this price level in 2023. This surge pushed the total crypto market cap to its highest since mid-August 2023, reaching $1.19 trillion. The bullish weekly close wiped out two months of losses and propelled Bitcoin’s dominance to over 52%, a level not seen since April 2021. MicroStrategy’s $4.6 billion Bitcoin investment also returned to profitability following an 11% weekly gain.
Despite Bitcoin’s 2% daily gain overshadowing most altcoins after the FTX collapse/bottom at 15k, several altcoins recorded substantial gains. Chainlink’s LINK led with a 17% gain breaking through the $8 resistance to reach $10.74 post-Terra/Luna collapse, while AAVE returned to 2023 resistance levels.
Today, Bitcoin hit its highest level since July at $30,369, marking its fourth-largest weekly gain in 2021. However, analysts caution against potential bearish shifts despite its current trading value of $29,950. A weekly close above $31k could signal bullish dominance over volatility.
Crypto analyst Ali cautioned about a head-and-shoulders pattern on Bitcoin’s daily chart, an overextended outlook due to the TD Sequential indicator showing a green 9 candlestick, and an RSI of 74.21, which has triggered sharp corrections since March. Positive ETF news could catalyze a run to $40k, but in the absence of this, the bearish pattern could test the resistance zone leading to a retest of support at $28,492 or even reach a bearish target of $25k. To avoid a price correction, a daily candlestick close above $31,560 would be necessary.
Source Courtesy: Investing.com