Bitcoin price analysis 11 October: could $60,000 be a sticking point?
Bitcoin has started its march toward $60,000.
Bitcoin has made a strong start to the month of October and is attempting to build on its gains. Several positive triggers boosted sentiment further in the past week.
The United States Securities and Exchange Commission (SEC) approved the Volt Crypto Industry Revolution and Tech exchange-traded fund (ETF) on 5 October. This ETF allows investors exposure to those companies that generate a majority of earnings from mining bitcoin or hold a large amount of net assets in the crypto token.
Crypto investors believe the SEC could approve as many as four bitcoin ETF products that are coming up for consideration in October. The hopes are high as all four products intend to hold bitcoin futures, a format that finds favour with SEC chair Gary Gensler; and not physical bitcoin. James Seyffart, an ETF analyst with Bloomberg Intelligence, said: “We are pretty bullish on approval here.”
Dawn Fitzpatrick, CEO and chief investment officer of Soros Fund Management, revealed in an interview at a Bloomberg event last week that the family office owns bitcoin but added that it was not a lot. “I'm not sure bitcoin is only viewed as an inflation hedge here. I think it’s crossed the chasm to mainstream,” Fitzpatrick said.
JP Morgan, in a note to its clients on Thursday (7 October) said: “Institutional investors appear to be returning to bitcoin, perhaps seeing it as a better inflation hedge than gold,” Fortune reported.
Could bitcoin bulls build on the strong start to the month and push the price toward the all-time high? Read our bitcoin price trend analysis to find out.
Bitcoin price technical analysis: weekly chart
Bitcoin’s price picked up momentum last week and broke above the stiff overhead resistance at $52,953.85. The BTC/USD pair finished the week at $54,678.25, a gain of 13.35% over the previous week’s close.
The rising moving averages and the Relative Strength Index (RSI) in the positive territory indicate that bulls are in control. The pair could next rally to $60,000, which is again likely to act as a stiff resistance.
If bulls do not give up much ground from $60,000, the pair could rise to the all-time high of $64,919.10. This is an important level for the bears to defend because if bulls push the price above it, the pair could rise to $80,000.
This bullish view will invalidate in the short term if the price turns down from the current level or the overhead resistance and dips back below $52,953.85. Such a move will suggest a lack of demand at higher levels.
The bitcoin price weekly analysis shows that bulls are in control and a rally to $60,000 is possible.
Bitcoin price technical analysis: daily chart
The bears tried to stall the recovery near $56,000 but they could not pull bitcoin’s price back below the breakout level at $52,953.85. This showed that the sentiment remained positive and traders held their positions anticipating a move higher.
Sustained buying has pushed the price above $56,172.25 today. If bulls maintain the price above this level, the possibility of a rally to $60,000 increases.
The bullish crossover on the moving averages and the RSI in the overbought zone suggests that buyers have the upper hand.
Contrary to this assumption, if the price fails to sustain above $56,172.25, the short-term traders may be tempted to book profits.
That could pull the price down to $52,953.85. This is an important level to watch out for because if it cracks, the correction could extend to the 20-day exponential moving average (EMA).
How to trade bitcoin this week
Bitcoin is in an uptrend and is on target to rise to the next stiff overhead resistance at $60,000. The bears will have to quickly pull and sustain the price below $56,172.25 to weaken the bullish momentum. A break and close below $52,953.85 will be the first sign that the bears may be back in the game.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial advisor before arriving at a decision.