Bitcoin (BTC) has recovered in the last 48 hours, bringing it back above the $27,000 psychological level. The recovery took the big crypto to as high as $28,592, surpassing the August high of around $28,200.
The past seven days have seen the price of the pioneer cryptocurrency change its behavior quite often. The coin traded in a drab sideways price action between September 22 and 25, trading under the 50-day Simple Moving Average (SMA). However, the latest uptick saw BTC break this barrier and now trades 5% higher on the weekly timeframe.
Bitcoin Price Could Return To $32,000 in October
Historically, October has been viewed as a bullish month for the crypto market causing analysts to fondly refer to it as “Uptober” over the last couple of years. Bitcoin started the month in the green rising 5% on Oct. 1.
However, the price turned down on Monday, although the day’s high was the highest in over one month. The price was rejected by strong resistance from the $28,000 supplier congestion zone, where both the 100-day and 200-day SMAs sit.
For bulls to push the flagship cryptocurrency into a new rally, they have to achieve a decisive daily candlestick close above the $28,000 psychological level. If this happens, it would suggest the ability of the bulls to scale the price highest with their eyes set on the $30,000 psychological level.
The stiffest hurdle lies around the $32,000 supplier zone. Note that the BTC price has not been able to rise above this level since May 2022. All the attempts to push Bitcoin above the level this year have been met by aggressive selling resulting in approximately 20% losses.
As such, breaking $32,000 would set Bitcoin on a new path to sustained recovery. The run-up to this level would represent a 15% increase from the current price.
BTC/USD Daily Chart
Supporting this positive outlook for Bitcoin was the position of the Relative Strength Index (RSI) in the positive region. The price strength at 60 suggested that the buyers were currently controlling the price.
The price also sat on strong support provided by the 50-day SMA at $26,500. This provided a safe haven for the bulls. If the price dropped to this point, the level would provide a place for them to regroup, and buy more at a discount before making another attempt at recovery.
On the other hand, the RSI was moving away from the overbought zone. This suggested that the sellers had returned to the market to book profits on the recent rally. If this continues, it could extend the ongoing correction toward the 50-day SMA. lower than that, the $26,000 psychological level and the major support at $25,000 would be the next logical moves.
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Source: https://www.analyticsinsight.net/bitcoin-price-prediction-btc-trades-above-28000-as-uptober-begins/