Bitcoin (BTC) price has been forming a midterm reversal pattern after rallying to a daily high of around $64,082. The initial bullish outlook triggered by the Fed’s rate cut, which signaled the onset of a shift to an economic growth period, has gradually waned off.
Furthermore, short-term traders are concerned about higher volatility in the last few days of September, which has historically been a bearish month. Nevertheless, Bitcoin’s bullish sentiments are expected to dominate in October and throughout the fourth quarter.
What’s brewing underneath the surface?
Recent on-chain data analysis revealed that miners from the Satoshi era have activated their holdings, transferring substantial amounts to different wallets. Specifically, five Bitcoin miner wallets moved 250 BTC, valued at nearly $16 million, to unknown wallets.
While these transfers could simply be technical adjustments, this activity has raised concerns about a possible sell-off that could impact buyers in the near term.
In the one-hour time frame against the US dollar, Bitcoin’s price has been forming a possible reversal pattern, characterized by a double top and a bearish divergence on the Relative Strength Index (RSI). According to popular crypto analyst Ali Martinez, the TD Sequential indicator has issued a sell signal in the higher time frame.
Given these indicators, analysts advise short-term traders to consider taking profits before a potential reversal this weekend and into next week.
Key Support Level to Monitor
If bearish sentiment continues, Bitcoin’s price is expected to find solid support around $61,000, which aligns with the 0.618 Fibonacci Retracement level on the one-hour chart.
The Bitcoin market has matured significantly, now involving nation-states such as the United States, China, El Salvador, and the United Kingdom. The approval of spot Bitcoin ETFs in the U.S. has greatly improved the asset’s liquidity.
As Bitcoin gains recognition as a safe haven, its underlying value is projected to align with that of gold, supporting a bullish outlook in the short term.
Also Check Out: Altseason Signals: Bitcoin Targets $73.6K, ETH Gains Momentum for Uptober
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