Bitcoin’s recent price increase over the weekend came as a surprise to many in the market. It recorded a 1.5% gain in the last 24 hours, pushing its value above the important $30,000 mark, which is also a significant resistance level.
At the time of writing, Bitcoin was trading at $30,154, showing a 12% increase in the past week, as reported by crypto market tracker Coingecko. On October 16th, the cryptocurrency briefly hit $30,000 on Binance due to false reports about an approved spot Bitcoin ETF. However, as soon as the truth came out, the market corrected itself.
Just two days later, Bitcoin once again reached $30,000, but it struggled to stay at this level, facing resistance and price fluctuations. These multiple attempts highlight the $30,000 price point as a crucial battleground for Bitcoin’s short-term price movements.
Key Drivers of Bitcoin’s Recent Surge
The recent surge in Bitcoin’s price doesn’t have a clear explanation, but it seems to be linked to the positive outlook regarding the potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission. People believe that such approval would make it easier and more regulated for investors to get into Bitcoin, attracting both institutional and regular investors and making Bitcoin more legitimate in traditional finance. This expectation of a regulatory milestone is a major factor driving Bitcoin’s price up.
Crypto analyst Jebb, a well-known figure in the field, has been looking at Bitcoin’s 200-weekly simple moving average. He considers this moving average very important for predicting Bitcoin’s future bull markets, based on its past performance.
BTCUSD nearing the $30K territory. Chart: TradingView.com
Jebb explains that this moving average has consistently been a critical and insightful indicator, giving valuable insights into how Bitcoin’s price moves.
He also dispels the idea that Bitcoin’s price dropped significantly below the 200-weekly moving average in 2022, making it less useful. Jebb believes that external factors, like the Federal Reserve’s unusual influence on Bitcoin’s price in 2021, had an impact on this decline.
He emphasizes that these unique circumstances played a big role in the 2022 downturn, highlighting that the 200-weekly moving average is still a valuable tool for predicting Bitcoin’s future direction, especially in more typical market conditions.
Factors Supporting Bitcoin’s Bull Market Predictions
According to Jebb’s analysis, if the U.S. central bank didn’t intervene, Bitcoin’s price might have surged to about $50,000 instead of $70,000, followed by a correction to approximately $20,000 instead of $27,000.
All these factors point to a Bitcoin bull market. Based on his research, Jebb predicts that Bitcoin could reach $50,000 to $70,000 in six months. This estimate gets an extra boost because it considers the April 2024 halving event.
Furthermore, Jebb introduced several technical indicators that make a forthcoming Bitcoin bull market seem likely. These indicators include the Moving Average Convergence Divergence (MACD) on the weekly chart, the Relative Strength Index (RSI), and the Lux Algo signals.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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