Analysis by a number of traders has indicated that Bitcoin price is currently trading above pivotal support levels
Bitcoin price has seen weak price action since reaching a high of $ 12,500 at the end of August. At the beginning of the month, BTC slipped from a year high to as low as $ 9,800 when it did. Adjusting in parallel with old markets. Fortunately for bulls, several traders have indicated that BTC is currently trading above pivotal support levels. This adds to the bullish on-chain and fundamental case laid out by several researchers in the space.
Bitcoin price holds a pivotal macro level
Bitcoin underwent a strong rejection at the $12,500 highs in August and earlier this month, but the cryptocurrency remains on decent footing from a macro perspective.
Crypto trader CryptoHamster recently shared the chart below, which shows that the coin managed to hold two pivotal levels over recent weeks. The first level BTC held in the macro resistance level from the $20,000 highs also marked the highs in mid-2019 and earlier this year. The second level Bitcoin held is the support from the 2018 lows.
Bitcoin managing to hold these two levels bodes well for the bull case.
Chart of BTC’s price action over the past few years | Source: TradingView
In a similar vein to the analysis above, crypto trader Bitcoin Jack recently noted that Bitcoin closed the monthly candle above a long-term support level.
The level is $10,500, where the cryptocurrency topped on a monthly scale in 2019 and where it found an intra-month top in February. Bitcoin managing to close above that level is bullish.
Chart of BTC’s price action since the start of 2017 | Source: TradingView
Bitcoin closes the 3rd quarter above resistance; can it hold above $ 10.000 support?
Bitcoin had a tremendous second and third quarter of 2020, after plunging to $3,800 as Q1 came to a close. At the start of the year, Bitcoin once again flirted with $10,000 and held briefly before pandemic fears spilled over into markets.
The recovery spread across the spring and summer months, but with fall here, that’s exactly what investors are hoping markets don’t do. Bitcoin price closed Q3 above the key level of $10,000 – making it only one of three quarterly candles to do so. Neither time before has it been able to hold, but this time around, there are plenty of reasons to hope for the best.
BTCUSD 3M Quarterly Close – One of Three Above $10,000 | Source: TradingView
Continued retests of $10,000 and even a fall below it daily, weekly, or even monthly timeframes cannot be ruled out, but there are several reasons why when the bell rings on Q4, Bitcoin price will be above $10,000.
For one, Bitcoin’s bear market is concluding. A pandemic and widespread panic that tanked the stock market could not take the leading cryptocurrency market cap to a lower low. The higher low could have, in fact, given bulls the confidence to push this high, and aren’t going to let the momentum slip.
Even if some consolidation remains, eventually, Bitcoin’s price will make a new high unless a lower low is set. And the first step to that was closing the quarterback above $10,000 for the third time. Major support and resistance flip along with a breakout from the “meme” downtrend line from the all-time high, further add to the positive technical outlook.
Finally, if there is any truth behind supply-based theories like the stock-to-flow model, the fact the halving is now in the past should be enough to keep the crypto asset above the crucial zone for now on. If not, proponents of lengthening cycle theories will be proven right, and the crypto asset could be at risk of a selloff by those who aren’t prepared to hold longer than the four years they expected.
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