Impending pennant breakout sets Bitcoin price back on the path to $14,000
As the weekend approaches, Bitcoin (BTC) price appears set to close out the month with a remarkably strong performance which has many bulls calling for a new all-time high above $20,000 in the near future.
Traders attribute these lofty estimates to the fact that BTC appears to have flipped $12,000 to $12,500 to support and barring some unexpected price implosion, Bitcoin is on the path to painting a beautiful monthly candle.
Further ‘bullish’ evidence comes from today’s options and futures expiry which saw $450 million of futures open interest expiring as of Oct.28.
According to Cointelegraph contributor Marcel Pechman:
“The most recent options expiry for BTC and ether really provided nothing surprising. Deribit is back to 137k BTC options versus the 150k open yesterday. Meanwhile, CME has $215 million futures open interest expiring on oct. 30, but this appears to have had a very minimal impact on price, if any at all. Once again, the phenomenon of the pre and post BTC price drop on the occurrence of CME futures expiries no longer exists. This reaffirms the bull case for the recent run, despite the negative news from Asian exchanges and tether.”
Currently, BTC is trading above $13.5K, and the 4-hour chart shows the digital asset making higher lows and lower highs as the price pulls into a tighter range.
Even as the price holds above the 20-day moving average, it wouldn’t be unexpected to see it range between $13,500 to $12,900 through the weekend and into early next week.
If Bitcoin price is able to push above the pennant trendline at $13,620 and secure a 4-hour close above it, then a renewed push for a new 2020-high above $13,859 is possible.
Currently, as trading volume increases, the moving average convergence divergence indicator shows the MACD has crossed above the signal line (orange) and the histogram shows an increase in momentum. The RSI is also above the midline, just reaching 60, but for the last few days, BTC has met resistance at $13,660.
In the event that BTC loses its current momentum and drops from the pennant below $13,100, there is support at $12,800. Failure to hold at this level opens the door for a retest of the next support at $12,000 and below this $11,500.
From a bird’s-eye-view, Bitcoin’s current price action is encouraging and the digital asset is clearly in a strong uptrend with room to run higher.
The same cannot be said for altcoins which have taken an absolute pummeling throughout this week. At the time of writing Ether (ETH) price is down by 5.8% as the top altcoin struggles to reclaim $400 as support. Chainlink (LINK) has dropped 6.74% and Binance Coin (BNB has lost 6.10%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $396.6 billion and Bitcoin’s dominance rate is 63.5%.