Crypto analyst Jesse Olson has highlighted the second consecutive Heikin Ashi sign on the Bitcoin (BTC) weekly chart. This comes regardless of Bitcoin’s current rise to as high as $58,000, which suggests {that a} bullish reversal may be on the horizon.
What The Heikin Ashi Sign Means For Bitcoin
Whereas highlighting the second consecutive Heikin Ashi on Bitcoin‘s weekly chart, Olson additionally famous that there was no wick to the upside, which means that the draw back development is more likely to proceed. The crypto analyst had additionally beforehand defined how the absence of a wick to the upside alerts a power in momentum to the downside.
Associated Studying
Primarily based on Olson’s accompanying chart, Bitcoin may endure additional downward strain and drop to as low as $40,000. This bearish evaluation comes amid Bitcoin’s restoration as its worth rose to $58,000 within the final 24 hours. Though it stays to be seen whether or not it’s a reduction bounce or a bullish reversal, Olson’s evaluation means that it’s extra possible a reduction bounce.
Nevertheless, crypto analyst Daan Crypto has suggested that Bitcoin must efficiently break above $60,000 to realize a bullish reversal and intention for brand new highs in this market cycle. In the meantime, opposite to Olson’s bearish evaluation, crypto analyst Mikybull Crypto has supplied a extra bullish outlook for Bitcoin.
In an X (previously Twitter) post, the crypto analyst said that Bitcoin has accomplished the bullish diamond formation. According to this, Mikybull Crypto remarked that he believes the underside is in for Bitcoin if the bull market remains to be on.
In one other X post, Mikybull Crypto highlighted a bullish divergence just lately shaped on Bitcoin’s chart, just like one in September 2023. Following the bullish divergence in September 2023, BTC skilled a big rally, which in the end paved the best way for reaching a new all-time high (ATH) in March earlier this yr. As such, one thing related may occur once more as Bitcoin tries to succeed in new highs.
BTC’s Value Rally Might Start After September
Contemplating Bitcoin’s historical bearish trend in September, the crypto group is optimistic that BTC may start its long-awaited worth rally as soon as this month is over. In a current evaluation, crypto analyst Rekt Capital defined why the flagship crypto would possible file large beneficial properties in October.
Associated Studying
The crypto analyst famous that Bitcoin’s solely month-to-month losses in October have been in 2014 and 2018, when it recorded month-to-month losses of -12.95% and -3.83%, respectively. He added that these have been bear markets. Nevertheless, Bitcoin is in a halving year, traditionally ushering within the bull market. As such, BTC may take pleasure in a bullish trip in October and even to the tip of the yr, particularly with the upcoming US presidential elections in November.
On the time of writing, Bitcoin is buying and selling at round $56,600, up over 3% within the final 24 hours, in keeping with knowledge from CoinMarketCap.
Featured picture created with Dall.E, chart from Tradingview.com