Bitcoin dropped to one-week lows on Oct. 23 as a return to support tested bulls’ resolve.
BTC/USD 1-hour chart. Source: TradingView
BTC price consolidation fails to dent optimism
Data from Cointelegraph Markets Pro and TradingView showed Bitcoin (BTC) price weakness delivering $60,063 on Bitstamp.
Down about 1.5% on the day at the time of writing, BTC/USD added to an existing comedown, which preserved $69,000 and above as resistance.
While market observers had anticipated such a scenario, trader and analyst Rekt Capital suggested that the weekly close would be a key cut-off point for short-term trend strength.
Uploading the weekly chart to X, he flagged the area just below $66,500 as the level to clinch by the end of the week.
“Previous Channel Top resistance (red) is now being retested into new support (green). The retest is underway,” he said.
“Bitcoin needs to Weekly Close above the Channel Top (black) for the retest to be successful (downside wicks in the meantime are permitted).”
BTC/USD 1-week chart. Source: Rekt Capital/X
An optimistic view came from trader and market analyst CryptoBullet, who leveraged the moving average convergence/ divergence (MACD) indicator to provide relief to those anxious for BTC price upside to return.
“Weekly MACD crossed bullish for the first time since October 2023!” he said on the day.
MACD is a trend strength indicator that uses two moving averages to compare recent price action with longer-term behavior. Crossovers give information about the strength of new price moves.
CryptoBullet argued that this time around, the landscape on BTC/USD was more reminiscent of 2021 — just a month before the pair hit its former all-time highs of $69,000.
The “same Vertical Rally (MACD peaked) followed by a painful Mid Term Correction” corresponds to Bitcoin’s rangebound price action since its latest all-time highs in March.
“Now $BTC is breaking out of multimonth consolidation as MACD crosses bullish again,” he concluded.
“IMO what we’re gonna see is a new ATH on price & a Lower High on MACD.”
BTC/USD chart with MACD data comparison. Source: CryptoBullet/X
Bitcoin, Ether still “well-supported”
As Cointelegraph continues to report, macro volatility catalysts for crypto focus on the upcoming United States presidential election, the Federal Reserve’s next meeting on interest rates on Nov. 7 and economic data.
Related: Bitcoin ETF $79M outflow ends 2-week bull run amid ‘sideways’ BTC price
In its latest bulletin to Telegram channel subscribers, trading firm QCP Capital said the key data print before the election and Fed event would be nonfarm payrolls (NFP), due for release on Nov. 1.
“All eyes are on the NFP release next Friday as uncertainty around the labor market persists,” it wrote.
“As the last NFP report before the next Fed meeting, it will play a critical role in shaping expectations for the Fed’s next move on interest rates.”
QCP added that both Bitcoin and Ether (ETH) “remain well-supported with potential upside ahead of the jobs data release and the election.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
