Bitcoin Rebounds after Weekend’s Bearishness

Briefly-

  • BTC weekly technical indicators suggest bullishness.
  • Meanwhile, weekly price actions remain bearish.
  • Bitcoin’s support levels stand at $56.5K and $52.3K – $53.3K.

While BTC attained a record peak of $67K during the October 18 – 22 week, it showed slight plummets over the weekend. With that, the week’s closing price remained almost $800 low than the opening. Meanwhile, weekly time frames depict mixed gestures between price action and technical indicators. Though most tech indicators remain bullish, price actions still hint at bearishness.

Bitcoin still trades beneath an ascending support level, existing since the crypto started its upsurges in 2020 March. This resistance level rejected Bitcoin twice after BTC broke down during June sessions. Failing to regain the line presents a bearish gesture, confirming that it might now serve as resistance. Despite that, technical indicators remain bullish.

The Moving Average Convergence Divergence, formed by short-term and long-term MA, moves upwards while maintaining positivity. Moreover, the Relative Strength Index stays over the 50-level and moves up. That confirms bullishness since the RSI depicts bullishness while it rises past 50.

Lastly, the SuperTrend exhibits bullishness. It is the indicator utilized to detect volatility to predict where the coin’s price will head next. Since Bitcoin has its price beyond this line, BTC’s trend remains bullish.

Possible Double Top

Meanwhile, Bitcoin seems to exhibit a possible double top shape. It is a bearish case, suggesting that Bitcoin might sustain bearish reversals in the up-and-coming sessions. Moreover, the 2nd top has a long top wick, appearing like a shooting star candle. That is a bearish case, showing that sellers are dominating. Keep in mind that selling momentum contributed to pushing BTC under its week’s opening and formed a top wick.

The pattern’s validity relies on whether analysts use the absolute peak or weekly close. The weekly close shows bulls testing the support. Meanwhile, the complete high shows movements resembling a double top. That highlights Bitcoin’s mixed price actions.

Bitcoin Support

The support zones seem more visible according to the daily price chart. The initial footing stand at $56,550. It is the 0.382 Fibonacci retracement support zones when measuring the recent upside move.

If BTC fails to hold this area, the crypto might secure the 2nd support in the $52,300 – $53,300 range. That is the 0.5 Fibonacci retracement when counting the overall uptrend since 22 June. Also, the range comprises supports and past resistance levels.

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