Bitcoin, trading at $61,046 at press time, exhibits a potential bullish momentum. A crypto influencer, Open4profit, recently shared a bullish outlook for Bitcoin. He pointed to consolidation near a key resistance level as a sign of a possible breakout.
CONSOLIDATION UNDER RESISTANCE = BULLISH#Bitcoin need to hold this green box area for new ATH.
No need to be bearish for side-wave price action. pic.twitter.com/eSqtYsdIYY
— Open4profit (@open4profit) October 10, 2024
Consolidation Under Resistance
Open4profit’s recent analysis shows a descending channel pattern on Bitcoin’s chart. The upper red line represents a sloping resistance level. Bitcoin has been repeatedly rejected at this level in recent months. The lower green line indicates a similar sloping support level, showing where Bitcoin has found support. Between these lines, a white dashed mid-channel line serves as a pivot zone for short-term price movements.
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Currently, Bitcoin is experiencing volatility near a key support level, positioned below the resistance level, which is considered a bullish indicator according to Open4profit. Such a style of consolidation can indicate the approach of the breakthrough. However, it is crucial to note that, if Bitcoin continues to trade above the associated support, a breakout of the descending channel is possible. The potential for a price jump has been identified, aligning with the upward trend indicated by the big green arrow in the analysis. This could catapult Bitcoin to cross over $70 000.
Bitcoin Versus Gold
At the same time, technical analyst Peter Brandt compared Bitcoin’s performance to gold. He suggested that Bitcoin could soon see significant gains if it breaks certain resistance levels.
The veteran analyst shared his view on Bitcoin’s long-term strength compared to gold. Brandt analyzed the BTC/GLD ratio, which shows how Bitcoin has performed against gold. The ratio has been rising steadily over the years. This reflects Bitcoin’s increasing value as a store of wealth compared to gold. Support has been found at 14 oz of gold, which helped Bitcoin start its recent rally.
Brandt identified a key resistance level at 32 oz of gold. Bitcoin has struggled to break through this point in the past. However, if Bitcoin can surpass this level, it may lead to even bigger gains. Brandt’s projection suggests a long-term target of over 100 oz of gold per Bitcoin. Per current rates, Brandt notes that a price of $323,854 is achievable.
