Bitcoin’s breakout after Bakkt announcement was brutal, the price dipped below the 200-day moving average and is still under it. The recent pump toward the end of October first week flipped the odds and now sides with the bulls.
The October 7th Pump
Bitcoin’s pump on October 7 shaped the previous bearish pattern into a bullish one – Broadening Bottom. The daily chart for Bitcoin showed the formation of a broadening pattern which indicated a bullish breakout 59% of the time.
Considering the position of the current price, it seems that a short leg down toward the $7,700 to $7,900 is imminent. Following this could be the potential bullish breakout from this pattern by mid-October.
The price and RSI have both created a negative slope indicating a bearish regime. However, MACD is displaying a bullish crossover indicating the possibility of bullish scenario.
This upside could be as high as $10,000 and it would if there is a Bart pattern but for the same to come to fruition, the price has to breach $9,500, $9,600 and then hit $10,000.
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Bears Plotting a Trojan Horse
Although MACD indicated a bullish crossover, it could be brief and the run-up could be disrupted by the bears as they seem to be plotting a Trojan Horse as 50-DMA nears the 200-DMA for crossing under it. This death cross could take BTC through another bear cycle, maybe even forming another bottom, perhaps, lower than the previous bottom.