Bitcoin (BTC) Price Action Hints at a Notable Trend Change as New Bullish Narratives Emerge
- Susan SarandonOriginal
- 2024-09-30 09:38:15649browse
Bitcoin (BTC) price is on the verge of a notable trend change in its weekly and monthly timeframe chart. On both timeframes, a close above $65,000
Bitcoin ( BTC ) price is on the verge of a notable trend change on the weekly and monthly time frame chart. A close above $65,000 on either time frame sets a higher high, breaking the trend of lower highs that has defined BTC's price action for the last 6 months.
BTC/USDT weekly chart. Source: TradingView
Prior to this week's rally above $66,000, the crypto market was suffering from narrative fatigue, but a new set of catalysts has traders believing that Bitcoin price is ready for the next higher leg.
The following events have occurred in the last few weeks:
Cumulative spot Bitcoin flows. Source: Farside Investors
As a result, traders believe central bank rate cuts and a possible return to loose monetary policy will reduce the high returns offered on many investment instruments and encourage the search for yield in Bitcoin and other cryptocurrencies.
Related: Quick return to $62K? Bearish divergence indicates a slow start to Uptober
Short term return to 62 thousand dollars?
From a technical perspective, Bitcoin has had a 3-day close above the 200-day moving average and the price is trading above the long 196-day downtrend line. As mentioned earlier, a close above $65,000 sets a higher top candle for the weekly and monthly time frame.
BTC/USDT 1 month chart. Source: TradingView
Next week, price pullbacks to the 20-day moving average at $62,000 will not be abnormal. Whether traders enter with enough force to defend this level and challenge demands in the $66,000 - $68,000 region will be actions to watch.
Beyond the daily price movements, it is clear that a new set of bullish Bitcoin narratives have arrived that traders have been waiting for, with BTC price potentially poised to test new all-time highs.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.
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