Bitcoin Retraces From $65,000; Is the Bull Run Finally Here?

After enduring a rough patch defined by steep drops, Bitcoin (BTC) has made a strong comeback, reclaiming the $65,000 level and reigniting whispers of an impending bull run. This resurgence follows two sharp downturns earlier this year, with BTC shedding over 20% on August 5 and September 6, leaving traders rattled and markets on edge.

Now, as October unfolds—a month that has historically favoured Bitcoin—the market sentiment is shifting gears. Analysts are beginning to sound more optimistic, suggesting BTC could be gearing up for a sustained rally. This could rekindle excitement and speculation among investors eager to see if this recovery marks the start of something much bigger.

Technical Indicators Signal Bullish Momentum

Recent technical analysis suggests a promising outlook for Bitcoin’s price action. The Relative Strength Index (RSI) has climbed to 63.92, positioning itself firmly above the signal line. This upward movement indicates that BTC still has room to run before hitting overbought territory, hinting at continued momentum.

Further strengthening this bullish narrative is the Directional Movement Index (DMI). The current +DI stands at 24.4208, significantly outpacing the -DI at 12.0112, a clear sign that buying pressure dominates the market. This imbalance underscores a robust upward trend, with buyers clearly in control.

The Average Directional Index (ADX), currently at 21.2706, also points to a moderate yet stable trend. While not overwhelmingly strong, the ADX above 20 suggests that the bullish momentum is genuine and could gather strength in the coming days.

Path to $79K in Sight This October

Bitcoin’s recent climb to $65,500 has reignited whispers of an impending parabolic run. Market observer Scott Melker highlighted that BTC is on the cusp of forming its first higher high since reaching $74,000 in March.

Is this the beginning of the parabolic bull run?$BTC is currently attempting to confirm its first higher high since topping at $74,000 in March.

A close above $65,000 (some would say it is already confirmed with the break above) would begin a new uptrend off of the $50,000… pic.twitter.com/TCBI6nQ09y

— The Wolf Of All Streets (@scottmelker) September 26, 2024

Melker further points out that a close above $65,000 would mark a definitive shift from the August low of $50,000, signalling the dawn of a bullish reversal and paving the way for a potential breakout. Historically, October has been a fertile ground for Bitcoin rallies, boasting an average gain of 22.90% during the month.

Analyst Lark Davis emphasizes that if Bitcoin’s price action mirrors these past performances, it could catapult toward $79,000, smashing through critical resistance and setting up for a possible explosive move into November. As the market watches and waits, the question remains: Is this the beginning of Bitcoin’s next great ascent?

As of press time, Bitcoin exchanged hands at $65,005, marking a 2.63% increase in the last 24 hours. Moreover, the asset’s market cap rose to $1.28 trillion, while its trading volume surged massively by 46.62% to the $36.33 billion threshold.

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