Bitcoin is trading within the long-term resistance at $ 13,800.
The monthly indicators are bullish, but there are weaknesses in the medium term
There is a possibility that BTC will move towards the mid-$ 12,000 mark before it eventually resumes its upward trend.
In October 2020, the Bitcoin price rose by 28%, narrowly missing the highest monthly close of all time of January 2018 – by less than $ 100.
Despite this spike, there are signs of developing weakness on the medium-term charts.
Bitcoins end of month
October was bullish for Bitcoin. BTC created a bullish candle and hit a high of $ 14,100 before declining slightly to close at $ 13,816.
Despite the sizeable surge, BTC is still trading within the long-term resistance area of $ 13,800 created in late January 2018 and the highs of July 2019.
The technical indicators are mostly bullish as both the so-called MACD and the stochastic oscillator are rising and the latter has formed a bullish cross. However, there is some weakness in the form of a slightly bearish bias in the RSI.
The weekly timeframe shows that the price has already risen above a certain level (0.618 Fib of the overall decline) stemming from the 2017 all-time highs. The next significant resistance level is at $ 16,203 (the 0.786 Fib level of the same decline) while the next support is at $ 12,000.
The technical indicators are bullish as the RSI, MACD and Stochastic Oscillator are rising – even if the slope of the latter has straightened out, indicating a loss of strength among buyers. However, none of these indicators show a decreasing divergence.
The daily chart is showing more pronounced weakness as the daily chart’s RSI has created a significant bearish divergence within the overbought area. In addition, the MACD has generated its first lower bar, even if the signal line is well above 0.
It would therefore make sense for some kind of retracement to take place before the price finally resumes its upward movement. Should the price pull back, the next support levels would be near the $ 12,600- $ 12,100 range (the 0.382-0.5 Fib levels of the overall move higher).