- BTC has managed to stay close to its psychological resistance level.
- Indicators pointed to the potential for a price breakout.
Historically, September has been a turbulent month for Bitcoin [BTC]often characterized by significant negative trends.
Despite this, the king coin has maintained a relatively stable price, close to the current psychological resistance level. If this trend continues, we could see a more positive move in October.
Bitcoin is facing consecutive declines
Over the past three days, Bitcoin has seen consecutive declines, trading around $58,650 at the time of writing.
This downtrend started on September 14, after Bitcoin broke above its psychological barrier during the previous trading session. BTC rose more than 4% in that session, reaching around $60,543.
This uptrend briefly pushed BTC into a bullish phase, with the Relative Strength Index (RSI) rising to around 50. However, the RSI rested at the neutral line at the time of writing, indicating a weakening of the bull trend.
Bitcoin: October rally in prospect?
In early October, Bitcoin’s price hovered around key technical levels. The yellow line represented the 50-day moving average, at $59,495.25, while the blue line marked the 200-day moving average, at $63,997.09.
Bitcoin was trading near the 23.6% Fibonacci retracement level, around $58,104.92, indicating potential resistance. On the downside, the $55,000 level emerged as the next major support based on Fibonacci extensions.
Source: TradingView
Suppose BTC can break above the 50-day moving average around $59,500 and maintain momentum. In that case, it could reach the 200-day moving average at $63,997, a key resistance level.
Positive indicators from the MACD and a neutral Relative Strength Index (RSI) pointed to a possible upside move in October, especially if the bulls regain control.
A rise towards the $63,000 range could trigger FOMO (fear of missing out), potentially pushing BTC to retest its all-time high.
The supply on the stock exchanges shows a slight upward trend
Recent analysis on Santiment indicated a slight upward trend in Bitcoin supply on exchanges. Despite this increase, trading volume has remained relatively stable and within the same threshold.
Read Bitcoin’s [BTC] Price forecast 2024-25
At the time of writing, the total BTC supply on the exchanges was approximately 1.8 million.
Given the recent market declines, this upward trend in supply could indicate a greater chance of a significant upward move in October as Bitcoin could be primed for a potential rally.