Bitcoin price saw a bullish divergence on the three-day chart that developed between June 30 and October 25. This technical formation happens when price declines are not reflected in similar falls in the Relative Strength Index (RSI), a popular momentum indicator. Such non-confirmation by RSI is usually a sign of weakening bearish momentum and can be indicative of the approach of a market reversal. Bitcoin price eventually saw a massive breakout on October 25, resulting in a 9% upswing in roughly 24 hours. Following this, BTC price underwent a minor pullback to support levels at $19,850 or $19,650 which could turn out to be key accumulation zones for the next leg higher, that could propel BTC to the $25,000 psychological level.

The $25,000 hurdle is a pivotal point in BTC’s journey. Flipping this resistance level into a support floor will indicate a bullish resurgence and propel Bitcoin price to the next significant area, extending between $28,000 and $29,000.

In a wildcard scenario, this Bitcoin price rally could extend to the $30,000 psychological level, bringing the total gain to 51%.

On the one-day chart, the potential levels where Bitcoin price could retest include the 50-day and 30-day Exponential Moving Averages (EMAs) at $19,847 and $19.640, respectively.

Therefore, accumulating at these levels could yield maximum gains if BTC eventually reaches its destination of $30,000.

While things are looking up for Bitcoin price, a breakdown of the point of control, aka the highest volume traded level for 2022 at $18,981, would invalidate the bullish thesis for BTC. This development could trigger a further crash that could knock the big crypto down to sweep the June 18 swing low at $17,593.

Here, buyers have another chance to step in, however, accumulate BTC and potentially kick-start a recovery.

Targeting $30,000 Price in sight on bitcoin

Oct 28 2022