Bitcoin Forms a Bullish Pattern : Will BTC Break Through Soon?

The largest cryptocurrency has been moving in such a way that gives the idea of an upcoming “cup and handle” pattern. After falling to $60,000 from a height of $66,000, bitcoin retested this support level twice before actually starting to rise. Currently trading at $62,071 is up by 1.03% in the last 24 hours however down by 5.72% in the last seven days. Let’s explore its next possible movement.

Analyzing Bitcoin Chart

The hourly BTC chart is suggesting the completion of a cup and handle pattern within the next few hours. This pattern when completed represents a bullish trend. The current market conditions are favoring this formation. The RSI indicator is also taking a systematic rise and has reached 55 points from 16 on October 2.

The daily chart on the other hand shows that the 20 daily moving average is acting as a resistance and not allowing the price to pass above $62,000. Bitcoin has been trying to surpass this moving average for the last 4 days and failed every time. The bullish pattern in the hourly chart can help break free of this resistance and move towards the next zone resistance.

Other Market Metrics

The liquidation data shows that in the last 24 hours the short traders have been liquidated. A combined volume of $126.90 million. In the past 24 hours a total of 42,637 traders were liquidated. The BTC long/short ratio lies at 1.3052 suggesting a rise in bullish sentiment among traders.

Data from IntoTheBlocks, shows that at current Bitcoin price, around 83% of the investors are in the profit, while 12% people are still in the loss. These investors purchase BTc at a price between $62,564 and $72,500. Whales wallets are not selling their assets that means they are confident in the price rise. A number of whale wallets have withdrawn their bitcoin out of the market that means they are waiting for an upwards movement.

Looking Ahead

All the market metrics are pointing towards an upcoming price surge however, there might be some corrections. Most of the bull markets have started around the month of October in the past. The current rise in Bitcoin can be the start of its walk towards a new all time high, however there might be a chance of a trap. Traders are advised to stay alert.